City Chain parent, watch and optical company Stelux Holdings International is expecting a higher loss for the six months ended September 30 compared with the same period last year.
In a profit warning to the Stock Exchange of Hong Kong, the group says the anticipated consolidated net loss is mainly attributable to a drop in turnover and gross profit because of persistent weak retail sentiment and cautious consumer spending as part of the overall economic slowdown.
The group expects to publish its interim results for the six months late next month.
Established in Hong Kong in 1963, the Stelux Group was initially a watch component manufacturer. As a retailer, its brands now include City Chain, eGG, Optical 88 and Seiko, and it has nearly 400 stores in China, Hong Kong, Macau, Malaysia, Singapore and Thailand.