Veeko International Holdings warns of significant profit loss

Veeko International Holdings issued a profit warning, anticipating a loss after tax ranging from HK$120 million to HK$126 million for the year ended March 31, 2025. This contrasts sharply with the HK$40.043 million loss recorded in the previous year. The expected loss is attributed to decreased revenue in both cosmetics and fashion segments due to store reductions, changing consumer behavior, and a decline in fair value of investment properties by approximately HK$40.918 million. The company is actively implementing strategies to restore profitability, including sales and marketing initiatives, negotiating rents, and optimizing its retail network. Despite the challenges, same-store sales in the fashion business have shown single-digit growth from April to early June 2025, and the cosmetics business's gross profit margin has improved. Executive Directors are also providing revolving loan facilities of up to HK$375 million to support the Group.