Trinity weathers stagnant China market
Li & Fung subsidiary Trinity, which retails high-end menswear Greater China and Europe, has weathered a stagnant home market in 2014.
The company posted revenue of HK$2.6 billion (US$335.2 million) and the gross profit was HK$1.9 billion ($244.95 million). The gross profit margin was 74.1 per cent representing a 1.4 percentage point decline due to liquidation of excess inventory, a management priority in the second half.
Trinity’s brands include D’Urban, Gieves & Hawkes, Cerruti 1881, Intermezzo and Kent&Curwen CEO Richard Cohen said Trinity achieved the performance milestones it set out last August and is on track with its medium-term strategy.
He said the company was putting in place “the right retail strategy and structure” to deliver consistent, sustainable returns into the future.
“We have significantly strengthened our teams up and down the organisation and continue to improve inventory management. In the past six months we have developed centralised shared services across all departments and improved our supply chain to make it more cost-effective and flexible.”
Cohen said that Trinity remained bullish about the Chinese market and opportunities to serve the Chinese consumer, whether at home or travelling abroad.
“We target globally and think locally,” he said.
“We are optimistic for the near and medium-term, and remain confident about the longer term potential for our business.
“We are looking forward to 2015 when the first Trinity collections developed by the new management team appear in stores.”