Hembly to boost sales from retail business
Hembly International Holdings, whose shares surged yesterday after the company bought the mainland distribution rights to Moschino brand products, aims to earn half its revenue from retailing and its wholesale clothing business next year from 10 per cent last year.
Hembly, whose core business is supply chain management, would boost sales by more than doubling the number of its outlets to 500 next year from 200 stores now and adding to its portfolio of distribution rights to international brands, chairman Billy Ngok Yan-yu said yesterday.
The company paid HK$10 million to add Moschino to the three other European brands it distributes on the mainland, Mr Ngok said yesterday.
Hembly on Tuesday said it had acquired the exclusive rights to the Italian high-end fashion brand for 10 years without disclosing the purchase amount. The company also distributes products of fashion brand Sisley and sport brands Lotto and Stonefly.
The shares jumped as much as 9.37 per cent following news of the Moschino acquisition and closed up 4.05 per cent at HK$4.11.
The expansion of Lotto and Stonefly stores would be through franchised outlets while Hembly would open Sisley stores on its own, Mr Ngok said.
Hembly last year said it would open 150 Sisley outlets in the next five years distributing men's and women's clothing and accessories, after forming a 50-50 joint-venture with Benetton Asia Pacific to produce, distribute and market Sisley's fashion and accessories in the mainland.
Mr Ngok, who last month reaped HK$104 million through a share placement that cut his Hembly stake to 40.11 per cent from 51.77 per cent, said the share sale would finance his HK$300 million acquisition of struggling Italian sportswear company Sergio Tacchini.
'Given the urgency of the acquisition, I had to sell my shares in Hembly to finance the deal,' he said, adding that he might raise his stake in Hembly later.
Sergio Tacchini would be injected into Hembly within three years at a 'fair price' in exchange for Hembly shares, he said.