Cosmetics chain Sa Sa posts decline in half-yearly profits on weak retail sales
Dwindling sales in HK, Macau hits turnover despite growth in company’s total sales transactions
The company’s profits fell to HK$96 million for the six-month period ending September 30, with turnover decreasing 4 per cent to HK$3.63 billion from the same period last year, according to a company statement.
Retail sales in Hong Kong and Macau, which make up over 80 per cent of Sa Sa’s turnover, slipped 3.6 per cent on weak mainland tourist numbers, as well as changes in consumer preferences and a strong Hong Kong dollar.
However, the company saw a 2.3 per cent growth in total sales transactions, after six consecutive quarters of decreasing transaction volume.
“Obviously, it could be better,” Guy Look, chief financial officer and executive director, told the Post. “In Hong Kong, we have tried for the last 15 months or so to gain market share, to increase competitiveness. I think what has been important in the first half of this year is that we feel we are moving in the right direction in terms of providing what the market wants.”
The company has observed a tapering off of the decline in mainland tourists to Hong Kong and Macau, signalling potential opportunities for Sa Sa.