Bauhaus International 0483

[winston]

Bauhaus sews up record by Ellen Wang
Friday, July 16, 2010

A market rebound sees apparel firm Bauhaus International (0483) reporting that net profit rose 36.5 percent to a record HK$83 million for the year to March 31.

Revenue jumped 6.5 percent jump to HK$793.8 million. A final dividend of 8.5 HK cents and a special dividend of 5 HK cents were declared.

The results were achieved as the market started to pick up during the second half of last financial year, said chairman George Wong Yui-lam. A focus on efficiency and profitability instead of scale also helped, Wong said.

"We closed four non-performing stores in Hong Kong and Macau last year," Wong said. But Bauhaus does not intend to close any more stores this year. Rather, the company is bullish on the retail market in the second half.

Its 34 outlets in the mainland contributed 15.6 percent of revenue last year. Bauhaus aims to open 30 more - 10 each in Beijing, Shanghai and Guangzhou - by March for which it has allotted HK$40 million.

The group has achieved an average same- store sales growth of 16 percent from April to June across the Greater China area. That compares with 5 percent growth throughout the last financial year.

Bauhaus has to renew leases for 40 percent of its SAR stores and one-third of its China outlets.

`We've come to an arrangement for half of them," said chief financial officer Kingo Li. "The rental increases are in single digits and sustainable."

http://www.thestandard.com.hk/news_deta ... 00716&fc=8

[winston]

not vested

DJ MARKET TALK:Bauhaus Falls 9.6%; Woes Don't Reflect Wider Sector

1120 [Dow Jones] Bauhaus (0483.HK) falls 9.6% to HK$1.97 on top of its 24.8% slump Monday which came on a 1H profit warning;

Its 1H results are expected Thursday. Still, Bauhaus' woes perhaps shouldn't be taken as a warning signal for all Hong Kong clothing retailers, as while they share some common problems such as rising rents, Bauhaus' product-positioning is quite different from say Giordano's (0709.HK);

It targets young people vs Giordano's mass-market approach. Bauhaus shares may find some support at today's intraday low of HK$1.89; key to stock's long-term fortune is whether the 1H earnings fall is temporary or there're some structural issues that are tougher to fix.

Investors, including shareholder activist David Webb, which has a 6.02% stake in Bauhaus, are likely keen to find out.

Source: Dow Jones Newswire