Bauhaus International Holdings Ltd. (483), a clothing retailer in Hong Kong, plunged by a record since its debut on the city’s stock exchange after issuing a profit warning because of higher costs.
Bauhaus slid 25 percent, the biggest drop since the stock started trading in May 2005, to HK$2.18 at close in Hong Kong. The benchmark Hang Seng Index retreated 1.4 percent.
The company expects to record “considerably lower” net income for the six months ended Sept. 30, compared with a year earlier, because of higher operating costs and a drop in profits contributed by its mainland China operations, Bauhaus said in a stock exchange filing on Nov. 18. For the six months ended Sept. 30, 2010, profit was HK$23 million ($3 million).
Bauhaus expects to report interim earnings on or before Nov. 30, according to the filing.
To contact the editor responsible for this story: Frank Longid at email@example.com