HONG KONG — Men’s wear company Trinity Group, which owns brands like Gieves & Hawkes, Cerruti 1881, and Kent & Curwen, warned that it plans to post a first-half operating loss due to fewer mainland tourists shopping in Hong Kong and Macau.
“In adapting to weak retail market in the Chinese Mainland and a decrease in the number of mainland travelers visiting Hong Kong and Macau, the group incurred higher one-time restructuring costs to mitigate these ongoing unfavorable conditions,” the company said Monday.
The Fung Retailing company added that while the sales by volume was relatively stable, it had adjusted prices down which put pressure on margins.
Both Hong Kong and Macau retail have been suffering in recent months due in large part to the sensitive political environment. Last week, tensions flared over Hong Kong’s electoral reform vote with crowds protesting in the streets and a bomb plot discovered outside the local legislature building.
Trinity is due to report its first-half earnings before September.