Milan Station losses halve as company closes stores
Hong Kong handbag retailer Milan Station losses halved last year, despite a 17 per cent fall in sales to HK$264.3 million.
The company reported a net loss for the year of $40 million, compared to $80.8 million the prior year, mainly due to decreased rental expenses due to the closure of unprofitable stores, and the absence of an impairment loss the prior year.
Milan Station derived 95 per cent of its sales from Hong Kong and the balance from Macau after earlier closing its stores in Mainland China.
Hong Kong sales decreased 18.7 per cent to $250.2 million, revenue coming from its seven Milan Station stores and six Thann stores, and its online platform. Sales in Macau rose by 36.9 per cent to $14.1 million as the territory’s gambling and tourism industries recovered.
The company’s inventory turnover improved from 79 days in 2017 to 75 days last year.