Bosideng sees profit decline of almost 12% for 2013-14
The Chinese group Bosideng generates nearly three-quarters of its sales from its down apparel, its eponymous brand and its production for other brands. For its 2013-14 fiscal year ending in late March, it posted sales of 978 million euros (8.238 billion yuan).
Bosideng points to a warm winter in order to explain a 17% decline in sales volume of branded down apparel to 17.8 million units. The approximately 2% increase of sales of its other products could not offset the decline. Overall, total sales for the year fell by nearly 12%.
The company saw its net income fall by about 36% to 82 million euros. Bosideng’s management explains the contraction by stressing increased labor costs and the soaring price of down as a result of bird flu.
While expecting an even more difficult local context for coming seasons, CEO Liang-Sheuh Hvei said that the Bosideng would restructure its operations. The group stresses, however, that it remains a major player on the Chinese down apparel market, its various brands capturing a 37.8% share.
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