Bossini International's profits attributable to equity holders surged to HK$64 million for the fiscal year ended June 30.

But a sluggish retail market in 2008-09 has prompted additional efforts by the company to keep growing.

"The fiscal year under review saw quite a bit of volatility, globally and regionally, with retailers being presented with both opportunities and challenges," a company statement said.

From April 1, 2006, to June 30, 2007, the company's net profits were HK$9 million. And basic earnings per share rose to HK$4.01 cents.

"While the economy showed considerable improvement in the first half of the fiscal year, with signs of rising consumer spending, the market overall has undergone drastic changes since the second quarter of 2008, marked by the outbreak of the US credit crisis," the company's statement said.

During the fiscal year, Hong Kong remained one of the main drivers of the group's retail sales' growth, and it sees potential on the mainland.

The company's retail sales and export franchising in Hong Kong amounted to HK$1.3 billion in 2008. With increased operating efficiency and productivity, same-store sales regained positive growth at 6 percent, a 1 percentage point decline from last year.

Meanwhile, stable progress was made in the mainland market in the year, with revenue reaching HK$447 million and same- store sales remaining flat. The group will continue to tap into business opportunities on the mainland.

"The group made a number of strategic steps to tap opportunities in the mainland market during the year under review," the statement said.

To maximize the potential in the mainland market, the company said: "New senior management members with extensive experience in the retail industry on the mainland have come on board, and a new brand controller in charge of the 'Bossinistyle' has been appointed to strengthen brand-management capabilities".

"With the strengthening of the Bossini brand and the implementation of new initiatives for the 'Bossinistyle' brand, the company is confident in the outlook on the mainland and expects to see continued improvement in the coming fiscal year with a plan to add 109 stores," the statement said.

(HK Edition 10/23/2008 page3)