Colourmix parent Veeko International warns of substantial loss

Colourmix parent and fashion retailer Veeko International has warned shareholders of a “significant increase” in its loss for the half year to September 30. 

A year ago, the company finished the half HK$19 million in the red, but chairman Johnny Cheng did not estimate the degree of loss in his profit warning issued yesterday. 

He said the loss was due to “decreased sales for both the cosmetics and fashion segments of the group as a result of the increasing tension of the Sino-American trade war and the further depreciation of Renminbi during the period, which resulted in the continued weakness of the retail environment and abatement in consumption sentiments”.

Notably, he did not refer to the social unrest which has adversely affected Hong Kong retailers since early June. 

But Cheng did say another factor in the loss was a provision for onerous contracts of underperforming retail stores.

Veeko International will release its interim results before November 30.

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