Eyewear chain Optical 88 is planning to expand its offer of hearing aids after successful trials in Hong Kong.
“The group is developing the market for hearing aid care and so far results have been within expectations. Therefore, we will continue to further explore and develop this in the next year,” parent Stelux International said in its annual results announcement.
The move is part of a broader strategy to target the market potential of aging demographics and the ever increasing demand of children with eye-care needs.
Optical 88, which operates about 220 stores in Hong Kong, Macau, Mainland China, Singapore and Malaysia, reported a 10.3 per cent decline in group turnover to HK$1.092 billion during the year and reduced pre-tax profit of HK$32.6 million, down by almost half on last year.
Due to weak local consumption and reduced tourist spend, Hong Kong and Macau sales fell 9.2 per cent to $758.5 million with EBIT falling by 44.5 per cent to $52.9 million, but a healthy gross profit margin was maintained. Operating costs other than shop rentals dropped by 4.6 per cent. Inventory was reduced by 19.3 per cent in the territory.
In Mainland China, amid weak market sentiment and fierce competition, the chain maintained turnover at $105 million and achieved a significant reduction in loss to $9.7 million, less than a tenth of the previous year’s.
Faced with sluggish domestic consumption and depreciation of local currencies, turnover in Optical 88’s Southeast Asian markets declined by 17.3 per cent to $228.7 million.
Gross profit margin in Thailand was under pressure whilst gross profit margin in Malaysia saw an uplift. However, bottom line performance in Southeast Asia greatly improved, turning to a profit in the second half of the year with positive contributions from Thailand and Malaysia.
“Well contained operating costs helped to alleviate the unfavorable decline in gross profit and the loss in Singapore narrowed in the second half of 2015-16,” Stelux concluded.
