by winston » Fri Jun 24, 2016 7:45 am
Sasa says here goes the neighborhood
by Dominique Nguy
Sasa International (0178) plans to cut stores in tourist districts and open more stores in neighborhood areas as the cosmetic company recorded a decline in profit of 54.3 percent to HK$383.5 million for the year ended March 31 compared to the previous year.
Sasa's turnover has also dropped by 12.8 percent to HK$7.84 billion with basic earnings per share at 13.4 HK cents.
The final and special final dividends per share proposed are 14.5 HK cents and the total annual dividend of 23.5 HK cents, unchanged.
Meanwhile, due to the drop in mainland visitors, the company's turnover in Hong Kong and Macau has decreased by 14.2 percent to HK$6.3 billion while same store sales fell by 11.8 percent.
Simon Kwok Siu-ming, chairman of the cosmetic chain store, said if the rents for stores in the tourist districts do not go down by 40 to 50 percent, they will not consider extending the leases.
Kwok said further that from April to June 20 this year, they have extended the leases for 14 stores and rents have gone down by 18 percent on average.
Other reasons for the decline in turnover include strengthened tourist facilities and convenient travel policies by other countries to attract mainland tourists and a strong Hong Kong dollar and depreciating yuan.
On the plan to open more stores in the neighborhood areas, Kwok said that they recorded some growth in businesses in stores located at the Lok Ma Chau border. Stores in Sheung Shui and Tuen Mun were also popular.
Kwok expects the number of stores in Hong Kong and Macau to remain the same as the previous year at 111. Meanwhile, Sasa's operation in themainland has recorded a loss of HK$39.6 million with turnover down by 9.6 percent (in local currency terms) to HK$303.8 million.
Source: The Standard
It's all about "how much you made when you were right" & "how little you lost when you were wrong"