HONG KONG — Trinity Limited said Friday its full-year net profit declined 42.9 percent as government austerity measures in mainland China curbed demand for its high-end menswear labels, which include Kent & Curwen, Cerruti 1881 and Gieves & Hawkes.
Hong Kong-listed Trinity, part of Fung Retailing Limited, warned it is "cautious" on the near-term outlook in China. While the economic slowdown appears to have bottomed "there is no catalyst yet for a rebound," the company said. Still, Trinity said it is still optimistic about its long-term prospects in the country and it believes China will "fulfill its promise as the biggest luxury market in the world."
The company's net profit for the year ending Dec. 31 dropped 42.9 percent to 308 million Hong Kong dollars, or $39.6 million. Revenue declined 3.7 percent to 2.69 billion Hong Kong dollars, or $346 million. Revenue from mainland China dropped 9.9 percent, the company said.
"These [government austerity] reforms, together with the domestic market in its recovery stage, have had the inevitable but expected impacts on Trinity's financial performance. Nevertheless, the group feels confident about how its business is positioned to leverage the future developments taking place in the high-end to luxury menswear sector," the company said in a filing.
Selling and marketing expenses rose 2 percent on the year to come in at 1.28 billion Hong Kong dollars, or $164.8 million. Trinity said the bulk of the cost increase came from Gieves & Hawkes, which it acquired in May 2012. General cost increases in China also cut into margins.
Trinity ended 2013 with a total of 451 stores, 360 of which were in China. Further expansion of its network is expected to moderate as the company acknowledged that "now is not the ideal time for store network expansion" in China. It opened 48 new stores and closed 74 stores in mainland China over the past year.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast