Tse Sui Luen sales in Hong Kong and Macau plunged 24.6 per cent in the last financial year.
The listed jeweller’s same-store sales fell 23 per cent in the two markets.
The company says that on the positive side, because of the challenging Hong Kong retail market, it has observed a fall in rental levels and seized the opportunity to open two new TSL stores, in Times Square at Causeway Bay and at Whampoa Garden.
At the end of the year the company had 28 self-run outlets in Hong Kong and three in Macau.
Mainland growth
Mainland China continued to be the group’s growth engine, with 4.7 per cent overall growth and same-store sales growth of 2.2 per cent. This business accounted for 43.6 per cent of the group’s turnover.
Consolidated turnover fell 3.6 per cent to HK$3.411 billion (US$437.9 million). Profit attributable to owners eased by 1.9 per cent to HK$23.177 million.
Tse Sui Luen Jewellery says factors as the devaluation of the renminbi and the slowing economic performance in Mainland China under the impact of the new government in the US as negatively impacting tourism, consumer confidence and purchasing power.
“Despite the challenging atmosphere, we are encouraged by the growth of our business in Mainland China, particularly our franchise business and e-business, which helped to partially offset the decline in sales activity in Hong Kong.”
More openings
The group will regularly review its store network in China and increase the opening pace of outlets, particularly in second- and third-tier cities. The total number of self-run outlets was 198 at the end of the year.
During the year, 49 stores were opened under the group’s franchising model, taking the total to 132. All up, the group has 330 stores in 112 cities on the mainland.
Tse Sui Luen Jewellery’s retail business in Malaysia had a 10 per cent drop in sales, mainly because of an average devaluation of the Malaysian ringgit of 5.2 per cent during the year. One more retail outlet was opened to take the total to four stores.
Through consistent monitoring, the group was able limit the drop in its overall consolidated gross margin to just 0.7 per cent to 44.8 per cent.
During the year, the group launched its International Design Collection, working with American art jewellery designer Christine Keller to introduce personalised fine jewellery in customer DIY workshops in several stores. The group aims to collaborate with other jewellery designers internationally with the aim of introducing more crossover collections.
