Hong Kong-headquartered jeweller Tse Sui Luen has warned of a loss of at least US$5.16 million in the six months to September, citing a dearth of tourists in the wake of Covid-19.
Chairman Annie Yau said the implementation of social distancing and quarantine measures in many countries worldwide has dampened consumer sentiment and brought international tourism to a standstill.
“The drastic drop in foot traffic has led to the sales slump of our retail stores, particularly those in Hong Kong and Macau, which are highly dependent on tourist spending and in-store customer traffic,” said Yau.
Tse Sui Luen had responded to the crisis by imposing cost-saving measures including “relentlessly negotiating rental with landlords” and streamlining business operations to minimise expenses.
“At the same time, we are restructuring our store network to further reduce rental costs, general and administrative expenses, and to optimise our network coverage.”
The company’s board said despite the looming loss, the company’s financial position remains sound with healthy cash flow and sufficient working capital.
The company expects to publish its half-year results by the end of next month.