Sa Sa issues profit warning on weak sales

Business | 18 Sep 2019 6:05 pm

Sa Sa International (0178) posted a profit warning today that it may record a net loss for August and the five months ended August 31 due to the weak sales performance in its core markets in Hong Kong.

Revenue for the five months ended August 31 dropped 15 percent from a year earlier to around HK$3 billion, among which revenue from Hong Kong and Macau markets decreased by 17 percent.

The company saw its revenue slid by 28 percent year-on-year in August, while revenue from Hong Kong and Macau declined by 32 percent.

Sales performance remained very weak during the first 15 days of September, with sales revenue falling 14 percent month-on-month, or 29 percent year-on-year.

The sales performance was hit by the decline of visitor arrivals from mainland China, as well as weaker consumer sentiment, caused by continuous social incidents in Hong Kong, increasing tension of Sino-US trade war and the depreciation of yuan, the cosmetics retailer said.

Shares of Sa Sa dropped 0.58 percent, or 1 HK cent, to HK$1.71.

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