Trinity Says Growth to Accelerate on China Economic Policies
Trinity Ltd. (891) , the high-end menswear retailer that sells Gieves & Hawkes and Cerruti in China, expects sales to increase faster next year as the government takes steps to boost economic growth.
Growth may pick up next year after same-store sales increased about 6.5 percent in the first half, Managing Director Sunny Wong said in an interview today. He expects comparable- store sales growth to climb “mid-to-high single digits” for the full year.
Wong joins other executives in forecasting better sales for the consumer industry in 2013 after a slowing economy curbed spending this year. Hengdeli Holdings Ltd. (3389), Swatch Group AG (UHR)’s China retail partner, this week said it expects luxury sales to improve next year. China has cut interest rates twice since June amid economic growth that has slowed for six straight quarters.
“I’m generally more optimistic about next year,” said Wong. “If China’s exports come back, and the government puts forward some monetary easing or stimulus measures, we’ll have a greater chance for a better performance.”
Trinity climbed as much as 3.5 percent to HK$5.56 before trading at HK$5.46. The benchmark Hang Seng Index gained 0.92 percent.
Trinity yesterday reported an 11 percent increase in first- half profit to HK$265 million. The company had to start discounting in June to get rid of higher inventory, Wong said.
Comparable- or same-store sales strip out the effect of new outlets by excluding those open for less than a year.
“This is not a good summer,” Wong said. “The summer sales promotion came early.”