Pou Sheng International (Holdings) Ltd., the retail arm of footwear maker Yue Yuen Industrial (Holdings) Ltd., said it expects to swing to a net loss in the fiscal year ended Sept. 30. The company attributed the net loss to narrower profit margins on Converse products following the end of an exclusive brand licensee arrangement at the end of 2008, discounts to boost sales, higher selling and distribution expenses, and increases in inventory provision.
The company did not give a forecast for the net loss.
The company said it expects an impairment provision from the proposed disposal of a stake in a jointly controlled unit also to have an adverse effect.
Pou Sheng posted a net profit of US$70.0 million for the 12 months ended Sept. 30, 2008, up 119.3% from the previous year.
Separately, Pou Sheng promoted Chief Financial Officer Karen Chang to chief executive, effective Jan. 1. Acting Chief Executive David Tsai will remain as non-executive chairman.
