HK's Top Form International's revenue at HK$ 265.8 mn in Q3 FY23

13 Jun '23

2 min read

Pic: Top Form International

Insights

Top Form International has reported a 39 per cent drop in Q3 FY23 sales to approximately $33.9 million, attributing the slump to softened demand from major US customers due to overstock and high inflation.
The manufacturer has predicted similar trends for Q4 FY23.
For FY23, the company expects sales to be significantly lower than the previous fiscal.

Top Form International, a global manufacturer of intimate apparel, has reported a 39 per cent decrease in sales to Hong Kong dollar (HK$) 265.8 million (approximate $33.9 million) for the third quarter (Q3) of fiscal 2023 (FY23), compared to the same period in the previous fiscal. However, this figure marked a considerable rebound from the second quarter. The company attributed the slump in sales to softened demand from their primary customers in the US, driven by an overstock situation and persistent high inflation.

The sales breakdown shows that 67 per cent of the company's sales were to the US market, 21 per cent to Europe, and 12 per cent to other regions worldwide, the company said in a media release.

For the nine months ending March 31, 2023, Top Form International reported sales of HK$ 737.7 million, a 35 per cent decrease compared to the corresponding period in the previous fiscal. The company attributed the weak sales performance to a significant drop in sales to major US customers.

On the production side, the company's manufacturing facilities in Southeast Asia accounted for 71 per cent of the global output, while China accounted for the remaining 29 per cent in the quarter. The use of the company's manufacturing capacity was significantly impacted by soft demand, particularly in Southeast Asia, where the majority of US customer orders are produced.

Based on the current order situation, the company expects sales for the fourth quarter to be similar or slightly better than the third quarter, but substantially lower than the corresponding quarter last year. For FY23, Top Form International expects sales to be significantly lower than the previous fiscal due to a substantial drop in demand from major customers.

Fibre2Fashion News Desk (DP)