Sa Sa profit rises
Cosmetics retailer Sa Sa says profit for the year to March 31 rose 13 per cent to HK$825.6 million (US$106.5 million).
The satisfactory performance benefited from the solid performance of its Hong Kong and Macau core markets, which remained the largest contributor to the company’s turnover and profits.
Nine new stores were opened in Hong Kong and Macau, taking its total to 106 Sasa-branded stores, one Suisse Programme specialty store and two La Colline specialty stores.
In China, its turnover was HK$365.8 million, showing barely flat growth, due to costs on opening new stores in the boutique size format and improvement of in-store and frontline staff productivity. It is now present in 31 mainland Chinese cities with 61 Sasa stores and six Suisse Programme counters.
Turnover in Singapore, where it has 22 Sasa stores, grew by 2.2 per cent in local currency to HK$256.7 million.
Its turnover in Malaysia and Taiwan, increased 9.8 per cent and 12.8 per cent, respectively.
The retailer expects the coming fiscal year to be challenging. A slow global economy is likely to be vulnerable to political turmoil and general weak consumption. Growth of mainland visitors to Hong Kong and Macau has moderated and the previously upward growth pattern has become more volatile, while mainland tourists’ spending power has also weakened, it says.
In light of this, Sa Sa says it will implement a disciplined expansion plan.