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RESULT HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2003

RESULT HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2003. Group Financial Highlights For the Year Ended December 31. Selected Financial Highlights & Ratios For the Year Ended December 31. Divisional Highlights For the Year Ended December 31.

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RESULT HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2003

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  1. RESULT HIGHLIGHTS FOR THE YEAR ENDED DECEMBER 31, 2003

  2. Group Financial Highlights For the Year Ended December 31

  3. Selected Financial Highlights & RatiosFor the Year Ended December 31

  4. Divisional HighlightsFor the Year Ended December 31 * Includes interest income and intra-division eliminations

  5. Retail and Distribution Division For the Year Ended December 31, 2003 Singapore 11% (11%) Taiwan 19% (20%) Malaysia 4% (4%) Hong Kong 22% (23%) Others 14% (14%) Mainland China 25% (25%) Australia 5% (3%) Note: 2002’s figures in brackets Retail and Distribution Turnover Composition by Market

  6. Retail and Distribution Division (Cont’d) For the Year Ended December 31, 2003 Bluestar Exchange 7% (7%) Giordano Ladies 4% (4%) Giordano core line + Junior 89% (89%) Note: 2002’s figures in brackets Retail and Distribution Turnover Composition by Brand

  7. Retail and Distribution Division (Cont’d) Brand Statistics • Total comparable store sales 9.3% • Total comparable store gross profit 7.7%

  8. Market Review Mainland China • Sales down 5%; sales per sq. ft. fell 25% • Adverse effects of SARS • Warm weather dampened sales in Sept. & Oct. • Cold temperatures resulted in sales rebound in Nov. & Dec. • Rental in prime locations remain high • Added 39 core line, 3 Junior, 9 Bluestar outlets • * Includes directly managed outlets only

  9. Market Review Hong Kong • Sales down 10%; sales per sq. ft. fell 9% • Worst hit by SARS due to reliance on tourism • Tightening inventory; cutting costs; high-margin products • Profitability recovered in 2H • Higher gross margins, except Bluestar; prices reducedfor larger market share

  10. Market Review Taiwan • Sales down 11%; sales per sq. ft. fell 10% • Momentum picked up in 2H on inventory mgmt and global product platform • Giordano Ladies major recovery after SARS • Bluestar capturing a larger market share in 4Q03 • Non-performing stores closed; better located stores added in late 4Q • Current recovery in performance sustainable

  11. Market Review Singapore • Sales down 7%; sales per sq. ft. fell 14% • Iraq War and SARS led to negative consumer sentiment in 1H • Heavy industry-wide price promotions in 2H • Recent modifications to our competitive strategy should yield stronger performance in 2004

  12. Market Review Other Markets • Accounts for 14% of total retail turnover (2002:10%) • YOY sales and gross margins improved • In Australia, 4 new stores were added in late 4Q; 5 new outlets planned for 2004; and growth momentum continuing • In Japan, shop portfolio revamped; efficiency improved by store size reduction. Sales per sq. ft. rose 12.5%. 10 new outlets to be added in 2004.

  13. Market Review Korea • Hurt by competition and weak consumer spending, sales fell 25% YOY • Frequent markdowns led to gross margins decline • Occupancy costs at department stores up due to higher commission rates • Higher occupancy costs, coupled with falling sales productivity resulted in double-digit YOY profits decline

  14. By the end of December 31, 2003, total of 1363outlets worldwide Korea 172 Mainland China 581 Japan 13 Myanmar 17 HongKong 75 Taiwan 195 Middle East 75 Thailand 33 Philippines 42 Aruba 5 Malaysia 42 Indonesia 33 Singapore 43 Brunei 3 Australia 34

  15. Number of Outlets, by Region and by Brand (as at December 31, 2003)

  16. Manufacturing Division (5.0 % of consolidated turnover) • Supplied 28.0% of retail division’s requirement • Turnover before elimination fell 9.7% • Sales contracted during the SARS outbreak; especially sales to third-party Japanese customers • Gross margins fell by 90 bps. • Industry surplus capacity led to price competition resulting in lower margins • Operating profit fell 22% • New European client base

  17. Outlook • Positive medium term global economic outlook • 2004 to be a year of rejuvenation & growth • Aim for higher sales & profit growth • Mainland China • Medium term earnings driver • Besides flagship store in Shanghai, nation-wide store refurbishments • Hong Kong • Upbeat on reviving economy; concerned about speculative forces may inflate property costs • Focus on enhancing brand image

  18. Outlook • Taiwan • Falling sales trend stopped • Presidential election casts uncertainty • To add 30 core line and 12 Bluestar outlets in 2004 • Singapore • Wide-spread wage cuts and Goods & Services Tax Hike • Focus on service & brand differentiation; and market segmentation

  19. Outlook • Korea • Mixed economic outlook for 2004; worst is over • Global Information platform enhances sales and inventory; closer ties with other markets • Markdowns curtailed by better product cycle management • Plan to open about 20 outlets • Japan • On the right track • Operating model working and operating losses within budget • Focus on Kansai area • Projected breakeven during 2H

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