Pou Sheng International (Holdings) Ltd., the retail arm of footwear maker Hong Kong-based Yue Yuen Industrial (Holdings) Ltd., said it expects to show a net loss in the fiscal year ended Sept. 30.
The loss was attributed 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 provisions. The company did not give a forecast for the net loss.
The company said it also 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 $70.0 million for the 12 months ended Sept. 30, up 119% from the previous year.
