HONG KONG — High-end men’s wear retailer Trinity Group said it would refresh the appeal and differentiation of its four brands as it sank into the red for interim earnings ended June, blaming sluggish sales in Mainland China and a weak euro.
The group, which sells Gieves & Hawkes, Cerruti 1881, Kent & Curwen, and D’urban, reported a loss of 47.4 million Hong Kong dollars, or $6.1 million, compared to a profit of 79 million Hong Kong dollars, or $10.2 million, a year ago.
Starting with the fall-winter 2015 collections, Trinity said Cerruti 1881 would represent an elegant Italian “dolce vita” outlook, while Kent & Curwen stands for youthful strength in sport. D’urban is to cater to the urbane man, while Gieves & Hawkes would reinforce itself as the finest in bespoke Savile Row tailoring.
The weakness in the first half was felt mainly in greater China, Trinity said. Revenue fell by 20.1 percent to 1 billion Hong Kong dollars, or $129 million. On a same-store sales basis, the group was down 15.9 percent.
“The management team, having had experience of working through the challenges of the America financial crisis in 2008, understands and is realistic about the situation we face as China’s economy transitions to a ‘new normal,’” the company said.
In Europe, the wholesale business increased to $5.7 million Hong Kong dollars, or $735,000, in the first half. However, its European licensing business recorded a decline of 19 percent mainly due to due to the weakening of the euro. It was stable in local currency terms.
Gross profit margin for the group declined by nearly 9 points to 70.7 percent as prices were lowered to spur sales. The company cut costs in all parts of the business including sourcing, merchandising, store rationalization and workforce downsizing.
Trinity counted 386 stores at the end of June, down from 433 stores a year ago.