High-fashion retailer and distributor Dickson Concepts (International) saw net profits hit a 10-year high despite a fall in turnover after losing distribution rights for Polo Ralph Lauren in Southeast Asia.
Net profit rose by 14 per cent to HK$346.8 million for the year to March 31, despite a 6.3 per cent drop in turnover to HK$3.4 billion over the same period, reflecting the loss of Polo Ralph Lauren from January.
However, the company gained HK$163.6 million from the termination and expiration of distribution licences, up from HK$141million a year earlier.
In addition, it also earned more than HK$30 million in net foreign exchange and interest income from financial assets last year, compared to HK$4.6 million in the previous year.
Chairman Dickson Poon said he expected the closure of Seibu Pacific Place this month to bring 'a temporary loss' in profits this year. The shop will be replaced by a flagship store of British high-end brand Harvey Nichols, which will also be run by Dickson Concepts.
Poon dismissed any suggestion that Seibu would withdraw from Hong Kong, saying it was looking for sites for new stores. He added that the cessation of distribution rights of Tommy Hilfiger on the mainland last February might also affect profits.