Fashion retailer Trinity turns the corner
Fashion brand owner and retailer Trinity has hailed “a significant turning point” after releasing its first-half year results.
“We have begun to reap the fruits of our reform and transformation efforts, most apparent of which is the group’s return to profitability,” said chairman Yafu Qiu.
Trinity, which owns fashion brands including Cerruti 1881, Gieves & Hawkes, Kent & Curwen and licensed brand D’Urban, has been boosted by Beijing Ruyi Fashion Investment Holding Company becoming the controlling shareholder.
Qiu said Trinity has largely completed its right-sizing process and was now pursuing its strategy to go global.
“Having now established a robust business platform, we will be able to pursue this objective with even greater vigour. From our stronghold in Asia, we will be driving the growth of our premium brands … in their native countries and in major fashion capitals of the world. Ahead of establishing flagship stores, as well as examining opportunities to strengthen our presence in prime areas and travel-related locations, we have been welcoming industry veterans to join our management team. Through their considerable experience and foresight, we are confident that all of our brands will not only enhance their global presence, but also enjoy a new period of renaissance.”
Fashion retailer Trinity has set up a new e-commerce team dedicated to raising the online presence of its brands and it has aligned with several online retail platforms catering to luxury consumers.
“Going forward, our objective will be to build on the growth momentum achieved since the close of last year. Despite rising headwinds resulting from unresolved political and economic developments in key parts of the world, we remain cautiously optimistic that the combination of a clear business roadmap, experienced management team, ongoing business reforms, strong ties with major stakeholders and conscientious global workforce will enable the group to transition into an even more profitable state, which in turn will open the way to new possibilities for growth,” he said.
The group’s total revenue for the first half of this year was HK$1.029 billion (US$131.2 million), up 15.6 per cent year on year.
Wholesale revenue, helped by closely working with the Ruyi group and its subsidiaries, rose from $11.7 million to $288.3 million.
Retail sales in Mainland China were $318 million, down $68.9 million year on year, mainly due to Trinity shutting down non-performing stores. There was a net reduction of 11 shops during the period taking the network to 152.
Same-store sales declined by 9 per cent due to fine-tuning prices and reducing discounting.
The gross margin improved from 67.2 per cent to 72.3 per cent.
Retail sales in Hong Kong & Macau totalled $231.7 million, down by $39.7 million and the store network was trimmed by four to 32. Same store sales declined by 11.2 per cent, again due to a change in pricing strategy.
Retail sales in Taiwan were HK$57.6 million, down by $12.8 million, with the store network cut by two to 40. Although same-store sales declined by 19.4 per vent, gross margin improved from 65.1 per cent to 68.5 per cent.
Retail sales in Europe were $61.3 million, down 9.8 per cent, again largely due to the closure of non-performing stores, as well as the depreciation of British pound and the Euro.
The group reported a profit of $76.6 million.