Belle interim net profit down nearly 20 pct

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Footwear and sportswear retailer Belle International Holdings Ltd registered a year-on-year decrease of 19.7 per cent in its net profit for the six months ended August 31, amounting to RMB1.73 billion (MOP1.61 billion), despite total revenue recording a slight increase of 0.9 per cent year-on-year, the company informed the Hong Kong Stock Exchange in a filing on Monday after trading hours.
During the six months, the retailer generated a total of RMB19.4 billion in revenue, of which nearly 98 per cent was earned from the company’s Mainland Chinese market, totalling RMB19 billion, an increase of 1.6 per cent year-on-year.
However, the company’s revenue in Hong Kong and Macau dropped by 12.7 per cent year-on-year to RMB424.6 million, compared to RMB486.3 million for the same period last year. In addition, the company’s revenue in other retail locations also plunged by 25.2 per cent year-on-year to RMB104.5 million.
In terms of business, revenue earned from retail sales of sportswear and apparel jumped by nearly 15 per cent year-on-year to RMB10.9 billion, up from RMB9.5 billion. ‘The growth of the sportswear and apparel business was mainly due to same store sales growth and continued retail network expansion,’ the retailer explained in the filing.
On the other hand, sales of footwear decreased by 12.7 per cent year-on-year, down to RMB8.6 billion for the six months, compared to RMB9.8 billion a year ago, due to a drop in same store sales, the company said.
As at the end of August, the company was operating a total of 138 retail outlets in Hong Kong and Macau, in addition to a total of 20,600 self-managed outlets in Mainland China.