Skin care and cosmetics retailer Sa Sa International Holdings Ltd said it expected to post a more than 50 percent drop in profits for the year ended March, due to a slide in sales and gross profit in a deteriorating retail environment.
The harsh retail climate had reduced operational efficiency, the chain operator said late on Wednesday, without elaborating.
In a separate statement, Sa Sa said it recorded flat growth at its Hong Kong and Macau retail sales over the April 30-May 2 Labour Day holidays, while same store sales grew only 1 percent as compared to last year when the holiday fell between May 1-3.
Sales to domestic customers declined 13 percent during the three-day holiday, reflecting poor consumption sentiment at home and increased outbound travel due to the strength of the Hong Kong dollar, the company said.
Sa Sa, which posted a 10.3 percent decline in profit last year to HKD 838.8 million, had said in April that its same-store sales in Hong Kong and Macau fell 17.6 percent during the January to March quarter, hit by declining mainland visitors and weak local consumer sentiment.
(Source: Reuters)