HONG KONG — Men’s wear firm Trinity Limited reported moderate revenue and net profit growth in 2012, reflecting the weakening retail environment in China.
Trinity, which owns the Kent & Curwen, Cerruti and Gieves & Hawkes brands, said revenues rose 7.4 percent last year to 2.8 billion Hong Kong dollars, or $360 million.
Net profit for the year rose by 5.2 percent to 540 million Hong Kong dollars, or $69.6 million, primarily boosted by a gain of 35 million Hong Kong dollars, or $4.5 million, from the sale of a 30 percent stake in a Ferragamo joint venture. A lower tax rate also helped buoy results.
Trinity gets the vast majority of its sales from greater China with 53 percent from the mainland, 31 percent from Hong Kong and Macau and 7 percent from Taiwan. European sales make up 9 percent of total revenue.
“Sunny” Wong Yat Ming, Trinity’s group managing director, described the market environment as “challenging,” but said the company’s strategy for China remains the same.
Last year’s profits took a hit as seasonal discounts in China were more prevalent than expected, Wong explained during a press conference. Competitors that typically do not offer discounts during peak shopping times — around Labor Day in May and National Day in early October — did offer discounts this year.
If the level of discounting remains the same this year, profit margins should be also be about the same in 2013, Wong said.
Trinity’s same-store sales slowed dramatically in the second half of the year. Same store sales in mainland China were down 1.6 percent for the year.
Wong noted that while sales in the eastern part of China were still quite depressed, high-growth regions such as western and northern China merely showed less growth. Same-store sales in Hong Kong and Macau did better, up 6.6 percent for the year, while Taiwan sales were down 11.9 percent due to poor consumer sentiment.
Looking forward, Wong said he remains optimistic and believes that medium- to long-term growth will continue to fuel the luxury retail sector.
“Domestic consumption is being encouraged and as a growing number of people move into the aspirational middle and upper classes, they have a stronger propensity to purchase luxury goods. The number of wealth Chinese is also increasing substantially,” he said.
Trinity opened 12 net new stores in China in 2012 and plans to continue opening new stores at the same rate, with a focus on larger stores, outlet stores and airport shops.
The company is also pushing to make its men’s wear brands more “global.” It is planning to open new Kent & Curwen flagship shop in the U.S. and a Savile Row shop in London.
Wong also said U.S. department stores have shown great interest in the company’s brands and that Cerutti’s fashion show at Paris Fashion Week helped put the brand back on the map.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews