Bauhaus pays for profit alert

Nancy Fei

Local apparel retailer Bauhaus International (0483) expects net profit to drop between 70 and 90 percent for the year to the end of March.

It attributed the plummet primarily to the combined effect of a reduction in provisions for inventories and a writeback of lease liabilities, the cessation of subsidies for Covid-19, and rises in rental and operating expenses since the pandemic ended.

Its share price fell 1.19

percent ahead of the profit alert.

For the three months ended March 31, same-store sales increased only 3 percent. Sales in Hong Kong declined 2 percent, while those in Macau rose 22 percent.

As of the end of March, the number of Bauhaus stores saw a net decrease of six, leaving it with 33.

There are 27 stores in Hong Kong and six in Macau, with each experiencing a net decrease of three.