Leading marketer and builder of international apparel brands in Asia, Hong Kong’s YGM Trading Ltd witnessed a dip in sales in in the first half of the current financial year 2013-14.
Dragged down by weakness in its garment business, total consolidated sales of YGM Trading fell 2.6 per cent to HK$ 589.7 million in the six months ended September 30, 2013 from HK$ 605.2 million in the same period a year ago.
Sales of garments, the company’s major business, fell 2.3 per cent to HK$ 515.7 million in H1 FY 2013-14 from HK$ 527.9 million in the same period a year ago.
A deteriorating global economic outlook amidst rising fears of the US Federal Reserve tapering its record stimulus program, coupled with a record long recession in major Eurozone economies and a deepening slowdown in mainland China weighed on consumer spending, taking toll on the company’s business in the first six months of FY 2013-14.
Total income of licensing of trademarks from external customers witnessed a decline of 6.5 per cent to HK$ 51.5 million in the six months ended September 30, 2013 from HK$ 55.1 million in the same period a year ago.
Profit from the company’s principle business, or garment sales that includes manufacturing, retailing and wholesaling of branded garments in the Greater China region, fell by 8.4 per cent to HK$ 80.1 million in the six months ended September 30, 2013 from the same period a year ago.
Owing to a reversal of indemnity liabilities, the company posted a consolidated profit attributable to equity shareholders of HK$111.1 million in H1 FY 2013-14.
Despite a challenging economic outlook, YGM Trading Ltd is hopeful that brand expansion may spark a revival of sales growth.