Luxury goods retailer Dickson Concepts (International) said annual profit climbed just 2.6 per cent as disappointing sales growth in Taiwan hurt earnings.
Profit for the year to March rose to $208.38 million from $203.1 million a year ago, slower than the 4 per cent growth forecast by Credit Suisse. Turnover rose 6.8 per cent to $2.64 billion while gross profit margin rose 3.7 percentage points to 55.8 per cent.
Chairman and chief executive Dickson Poon said unsatisfactory sales growth in Taiwan, which accounted for 25 per cent of the company's sales, dragged down the company's earnings.
'In Taiwan, a tightening of credit card limits by local banks and growing political uncertainties temporarily affected sales,' he said.
Sales in Taiwan gained 8.3 per cent to $660.8 million for the year from $610 million a year ago, compared with a 26.6 per cent jump in China to $296.8 million. Sales in Hong Kong rose 6.8 per cent to $1.42 billion from $1.33 billion.
Still, Mr Poon is confident that Taiwan's retail market would soon pick up. The company plans to scale back its operations there, where it runs 143 stores.
'Normally, a policy such as tightening of credit card limits will not last long,' he said.