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TSL Accelerates China Expansion

Jun 20, 2019 2:00 AM   By Rapaport News
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RAPAPORT... Tse Sui Luen (TSL) will further broaden its Chinese network over the next few years, as it continues to see solid growth in the country.

The Hong Kong-based jewelry retailer will open an additional 100 stores in mainland China in the coming two years, following the launch of 55 new locations during the past year, it said Wednesday. The move comes after sales in the country accounted for 37% of the group’s turnover in the past year.

Total revenue slipped 1.7% to HKD 4.06 billion ($519.5 million) in the 12 months ending March 31. Profit for the period grew 9% to HKD 54.2 million ($6.9 million). However, last year the jeweler adjusted its fiscal year to match the traditional retail cycle. As a result, the year ending March 31, 2018, covered a 13-month period, instead of the 12 months this year.

While sales in the first half of the year remained strong, the US-China trade war hit consumer spending in the second half, as local currency weakened against the US dollar.

“The dispute between the United States and China…has adversely affected the market sentiment and consumer confidence and resulted in the depreciation in the [yuan], all leading to a slowdown in the global economy and in the local retail sales performance…particularly…in the second half of the year.”

Sales in mainland China fell 1.3% to HKD 2.51 billion ($321 million) during the 12 months, compared to HKD 2.54 billion ($3.25 million) for the 13-month period a year ago. The group had 205 self-operated stores and 230 franchised stores in China at the end of March. Revenue in Hong Kong and Macau dropped 2.6% to HKD 1.49 billion ($190.7 million), as the general downward trend of retail in Hong Kong continued. Sales from other countries decreased 1.4% to HKD 61.2 million ($7.8 million) for the year.

Image: A TSL store in Hong Kong. (Naoniaum21)
Tags: Rapaport News, Tse Sui Luen, TSL, US-China trade war
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