Milan Station losses halve after store closures
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Hong Kong handbag retailer Milan Station losses halved last year, despite a 17 per cent fall in sales to HK$264.3 million.
The company reported a net loss for the year of $40 million, compared to $80.8 million the prior year, mainly due to decreased rental expenses due to the closure of unprofitable stores, and the absence of an impairment loss the prior year.
Milan Station derived 95 per cent of its sales from Hong Kong and the balance from Macau after earlier closing its stores in Mainland China.
Hong Kong sales decreased 18.7 per cent to $250.2 million, revenue coming from its seven Milan Station stores and six Thann stores, and its online platform. Sales in Macau rose by 36.9 per cent to $14.1 million as the territory’s gambling and tourism industries recovered.
The company’s inventory turnover improved from 79 days in 2017 to 75 days last year.
Questions & Answers
Q.What was the main reason Milan Station managed to halve its losses despite falling sales?
What was the main reason Milan Station managed to halve its losses despite falling sales?
The reduction in losses was primarily due to decreased rental expenses from closing unprofitable stores. There was also no impairment loss reported, unlike the previous year.
Q.What proportion of Milan Station's sales came from Hong Kong last year?
What proportion of Milan Station's sales came from Hong Kong last year?
Last year, Hong Kong accounted for 95 per cent of Milan Station's total sales. The remaining balance came from Macau, following earlier closures of Mainland China stores.
Q.Which of Milan Station's markets saw sales growth last year, and what caused this?
Which of Milan Station's markets saw sales growth last year, and what caused this?
Sales in Macau rose by 36.9 per cent to $14.1 million last year. This growth was attributed to the recovery of the territory’s gambling and tourism industries.