Sogo department stores achieve strong sales growth
Sogo department stores parent Lifestyle International has reported a 50 per cent drop in net profit for last year, despite increased sales.
While turnover rose 16 per cent to HK$4.36 billion (US$555 million), net profit fell to $1.69 billion ($215 million).
However, the company explained the fall was largely due to comparison with 2017 when the company received a one-off gain from the sale of a majority stake in its subsidiary, netting $420.8 million. On a trading basis, the department stores it operates posted solid results.
Sales at its Sogo Causeway Bay flagship store rose by 10.5 per cent last year, and mainland tourists underpinned a 30.3 per cent increase in sales at the Sogo Tsim Sha Tsui store.
CFO Terry Poon Fuk-chuen said the improved turnover was due to the company enhancing the shopping experience at its stores.
“Looking ahead, the group predicts a single digit growth in the first half of 2019 and adopts a cautious approach for 2019,” he said.