FASHION retailer Joyce Boutique has recovered from its disappointing results last year, while its share price remains undervalued.
The company recently announced a net profit of $34.04 million, a slight increase of four per cent.
This result initially appears unexciting, but, taking into account that in the first half the group posted a 37.2 per cent decline in profits to $10.2 million, the second-half profit of $23.83 million indicates a solid turnaround from the interim, and represents a 44 per cent improvement from the corresponding period in the 1992 financial year.
The improvement achieved during 1993 is due to concerted management efforts to enhance operational efficiency, including an investment in computers.
In addition, the company has taken steps to consolidate some of its free-standing boutiques into larger existing outlets to reduce rental expenses.
Furthermore, all leases with Hong Kong Land were revised at favourable terms up to 1996, eliminating a major uncertainty on costs. These factors are expected to contribute to further sustained growth for the company in the coming years.
Joyce is generally recognised as a leading fashion retailer in Hong Kong. There are now 24 boutiques and one cafe under its management, with over 66,000 square feet of sales area.