Milan Station posts loss of HK$53mln

Hong Kong handbag retailer Milan Station registered a loss of HK$53 million (US$6.6 million) in its annual results for 2014,claiming it was due to the ‘Occupy Central’ movement in Hong Kong, as well as the slowdown of the gaming industry in Macau.
According to the company’s filing with the Hong Kong Stock Exchange yesterday, the annual net loss of Milan Station represents an increase of 41 per cent year-on-year from HK$38 million in 2013.
‘Changes initiated by the Chinese government to its tourism policy and the political movement of ‘Occupy Central’ in Hong Kong in the fourth quarter substantially dampened consumer sentiment in both Mainland China and Hong Kong, especially the demand for luxury items. The Group’s retail handbag business in Mainland China, Hong Kong and Macau was deeply affected,’ the company wrote.
In fact, Milan Station had generated a total of HK$616 million in terms of revenue, which, however, still represents a year-on-year drop of 11.8 per cent. The drop in revenues was worsened by the company’s Hong Kong market, with revenues down 16.7 per cent year-on-year to HK$452.1 million from HK$543 million in 2013.
Meanwhile, the handbag retailer claimed that revenues gained from the Macau market were ‘seriously affected’ by declining gaming revenues in the Special Administrative Region, although the amount only decreased by 0.8 per cent year-on-year to HK$81.4 million.
‘The overall revenue from the city’s gaming industry was approximately MOP351,500 million, down 2.6 per cent. It put the retail industry under pressure, especially the luxury goods retail sector,’ it wrote, adding ‘therefore, the operation of the Group’s retail shops and points of sale in exclusive clubhouses in the city was seriously affected.’
Nevertheless, the Group’s revenues gained from Mainland China and Singapore increased 8.2 per cent and 2 per cent year-on-year, to HK$69.9 million and HK$12 million, respectively.
K.L.