VIP Industries Faces Two More Loss-Making Years Despite Revenue Recovery

VIP Industries makes luggage, but it has been losing money.

Its sales recently started growing again after seven quarters of decline.

However, the company still lost more money because materials and other costs became expensive.

It also spends heavily on advertising to compete with other luggage brands.

A brokerage says some costs, such as professional fees and miscellaneous expenses, could be reduced.

Other costs, including freight, employee expenses and outsourced work, may be harder to cut.

Making more luggage in its own factories could eventually improve profits.

The brokerage expects losses to continue through FY27, with near break-even results projected for FY28.