Tse Sui Luen’s 1H Sales Slide 4%
Nov 1, 2015 3:49 AM
By Rapaport News
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RAPAPORT... Tse Sui Luen Jewellery International reported that revenue fell 3.6 percent year on year to $226.1 million (HKD 1.75 billion) for the six months ending August 31, due to continued weakness in Hong Kong.
The retail jeweler saw its Hong Kong and Macau sales slump 19 percent to $112 million (HKD 867.6 million) with same-store sales down 20 percent. The company explained the decline resulted from a drop in tourist numbers to the region and a spending shift away from luxury jewelry products and higher-priced gifting items toward more popular mass-market commodities.
Mainland China sales grew 5 percent to $111 million (HKD 860.2 million) with same-store sales up 2 percent. Sales in other countries grew 9 percent to $3.2 million (HKD 24.8 million).
Operating profit for the period fell 16 percent to $8.1 million (HKD 62.4 million) and net profit plunged 40 percent to $2 million (HKD 15.4 million).
Retail sales accounted for about 89 percent of Tse Sui Luen's total revenue, with the remainder mainly made up of its wholesale operations.
The jeweler launched 22 new franchise stores during the period bringing the total to 56, while it is looking to expand its network of franchised stores to 100 in the next two years. Tse Sui Leun is also looking to spur growth through expansion in Mainland China from its current base of 169 stores there.
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Tags:
China, Hong Kong, Rapaport News, retail, Tse Sui Luen
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