Joyce Revenue Accelerated, But Profits Improved.

According to the world clothing shoes and hats net, Hongkong luxury.

Retailer

Boutique Holdings Ltd. (0647.HK), the last year, has accelerated its revenue decline, but its profits have improved.

Joyce Boutique Holdings Ltd. said that revenue declined by 19.1% to HK $954 million in the 2017 fiscal year ended March 31st as the end of the lease expired and the overall retail performance was weak under the difficult operating environment. The decrease was significantly larger than that of 2016 at the end of the year, and has declined for 3 consecutive years.

The closed shop measures improved profitability on the other hand. The group also increased marginal profits through more effective control of operating costs and negotiating rent reduction for its stores. Gross profit margin increased by 240 basis points in fiscal 2017, and 300 basis points in the previous year.

Hongkong's local business income fell 17.3% to HK $817 million compared to the same period last year, and its operating deficit expanded 13.5% to HK $31 million 780 thousand.

Business revenue in mainland China dropped by 30% to HK $130 million 200 thousand, the group said that sales in the region generally declined, and the old stock realized higher and gross margin fell 470 basis points. But the profit of the two Joyce Warehouse stores was reduced by 92% to 3 million 670 thousand Hong Kong dollars due to the closure of two Warehouse IAPM stores over the past quarter. The HK $6 million 200 thousand for the provision of the loss contract of the Joyce mall store in Hong Kong was back.

Italy

The Marni Group SrL SrL mani joint venture (Group Holdings 49%) recorded a 4.3% decrease in revenue and a decrease of HK $1 million 500 thousand in operating losses from HK $6 million 700 thousand in the previous year.

As of March 31, 2017, Joyce Boutique Holdings Ltd. has 39 stores, a 11 decrease from the same period a year ago, including the closure of 3 Boss stores and 3 Stella McCartney stores with the expiration of the franchise, 3 shops with poor performance in Hongkong and the mainland, loss shops in Taiwan Sogo SOGO Department, Marni joint ventures, and the two Joyce Warehouse shops in the past quarter, while the new stores only have a Hongkong focus brand.

As of the end of the fiscal year, the total number of stores in Hongkong was 24, including 3 multi brand Joyce shops, 9 single brand stores (Victoria Beckham, Sacai, Thom Browne, Alexander and Wang), 11 Joyce Beauty and 1 Joyce Beauty, and 5 5 stores in the mainland, including 2 multi brand shops, 2 2 and 1 1 stores, and Macao also has a store.

The total number of employees is 414, a decrease of 123 over the same period last year, and the cost of staff and workers also decreased by 10.7% to HK $15 thousand and 450.

Looking forward to the current 2018 fiscal year, the Group expects that the business environment will continue to be grim, especially in the gold shopping area, where the rental level is still high relative to income, and the number and variety of e-commerce platforms are increasing.

Huang Chenghui, chief financial officer of Joyce Boutique Holdings Ltd., said in an interview in August 2016 that the same store sales still recorded double-digit declines, and it was not expected to rise significantly in the short and medium term.

In its annual performance, the group disclosed that it is adopting a set of strategies to consolidate sales in the same store, which is expanding product quality, enriching customer shopping experience and providing more intimate services to increase passenger flow, so as to enable business to grow and improve efficiency.

Joyce Boutique Holdings Ltd. (0647.HK) is a subsidiary of Lane Crawford Joyce Group, which is one of the businesses of Hongkong's Kowloon warehouse group (0004.HK).

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