High Fashion International, which makes silk apparel for private label August Silk and international labels such as Donna Karan, on Wednesday revealed it plunged into the red in fiscal 2002 amid weak consumer spending.

The company posted a net loss of HK$27.1 million for the year to September 30 versus a net profit of HK$101.8m in 2001 with turnover falling by almost 30 per cent to HK$1.6 billion from last year.

The company said in a statement that increased pressure on price, profit margin and order quantities had been compounded by difficult global economic conditions.

"The whole apparel industry has been suffering since the September 11 terrorist attacks. Business in the moderate and high-end market, particularly silk apparel, was adversely affected," it said.

It added its results were also hit by the write-off of HK$59m in goodwill for subsidiary Theme International which saw its net loss plunge to HK$27.4m from HK$6.6m in the year-ago period.