HONG KONG, March 14 (Reuters) - High-end menswear retailer Trinity Ltd reported a 42.9 percent drop in its 2013 profit due to a slowdown in luxury spending in China.
With hundreds of high-end retail shops in Greater China, Hong Kong-listed Trinity has been on the front lines as Beijing’s clamp-down on corruption and austerity drive curb sales.
It has had to contend with fewer customers in its main market and costs associated with trying to bolster its European presence as more wealthy Chinese travel overseas to make their luxury purchases.
Trinity said it earned HK$308 million ($39.67 million) in the 12 months ended Dec. 31 compared with HK$540 million a year earlier. Analysts on average had expected HK$314.2 million, according to Thomson Reuters data.
A weighted estimate from Thomson Reuters Starmine, which took into account the accuracy of analysts’ past estimates, had forecast a profit of HK$304.2 million.
Revenue fell 3.7 percent to HK$2.7 billion.
Trinity is part of the privately held Fung Group. It sells Kent & Curwen, Cerruti, Gieves & Hawkes, D‘URBAN and Intermezzo-branded goods.
Shares of Trinity have slumped 26.9 percent this year compared with a 7.6 percent fall in the benchmark Hang Seng index. ($1 = 7.7649 Hong Kong Dollars) (Reporting by Clare Baldwin; Editing by Ryan Woo)