HONG KONG — Men’s wear group Trinity Ltd. warned Wednesday that it expects to incur a “significantly higher” operating loss for the first half ending June 30 compared to the year-earlier period.
The company said its performance has been adversely affected by the ongoing depressed state of the retail market in Hong Kong and Macau as well as widespread discounting and dampended consumer sentiment in mainland China.
Trinity also warned that it sees its full-year loss will be higher than that of 2015. The company is due to report first-half numbers in August.
Trinity has suffered financially over the past few years, as the market for men’s wear in Asia has softened. The company posted a net loss of 89 million Hong Kong dollars, or $11.45 million, for the year ended Dec. 31 as sales slid 27 percent to 1.9 billion Hong Kong dollars, or $244.51 million. Profits and revenue slid in both 2014 and 2013.
As reported earlier this month, Richard Cohen has stepped down as Trinity ceo, the latest in a series of managerial and creative changes at the company. Jeremy Paul Egerton Hobbins replaced him. Hobbins was director of various companies within the Hong Kong-based Fung Group, which controls Trinity.
“Against this backdrop and deteriorating market conditions, the Group has recently appointed a new chief executive officer who will be undertaking a realignment of senior management and a reorganization of operations to optimize manufacturing, inventory management and supply chain execution. As a result of these changes, the Group will also incur one-off costs in the first and second half of the year.”