Footwear retailer Le Saunda to slow pace of expansion after profit drop

Footwear retailer Le Saunda Holdings plans to slow its pace of expansion after reporting a nearly 8 per cent drop in net profit in the last fiscal year.

Alice Lau, chief executive of Le Saunda, said yesterday the company would remain cautious on the mainland market as sales across the border had been volatile in the past three months.

The firm's share price rose nearly 4 per cent ahead of a company press briefing yesterday before it closed 0.4 per cent lower at HK$2.57.

Le Saunda said in a filing on Monday that net profit for the year to February dropped 7.8 per cent to HK$179 million even as revenue grew 14 per cent to HK$1.76 billion. Net income declined because it offered discounts in an effort to combat weak consumer sentiment.

The firm's mainland retail business generated revenue of HK$1.52 billion during the period, accounting for 86 per cent of total sales. Hong Kong and Macau contributed HK$206 million to revenue.