Lifestyle International Holdings, one of Hong Kong's largest department store operators, expects the Hong Kong retail market to do better than the mainland market in the second half of this year thanks to positive market sentiment and an upsurge in tourist arrivals in the city.
The operator of Hong Kong's Sogo and mainland's Jiuguang department stores posted net profit of HK$807 million for the six months to June, up 30.6 per cent from the same period last year.
Turnover grew 20.6 per cent to HK$2.4 billion for the half-year period.
The company's share price closed down 35 HK cents, or 1.5 per cent, at HK$23.05 yesterday compared with a 2.17 per cent fall in the benchmark Hang Seng Index.
Managing director Thomas Lau Luen-hung said the two Sogo stores in Causeway Bay and Tsim Sha Tsui had seen strong growth, while the retail sector in Hong Kong had also shown remarkable growth this year.
Sales revenue at the two stores rose 23 per cent year on year to HK$4 billion, accounting for 2 per cent of gross retail sales in the city for the period, lifted by rising demand for luxury goods. Same-store sales growth was more than 20 per cent compared with last year.