Chinese footwear retailer Le Saunda saw revenue and profit fall by more than 30 per cent in the last six months as the impact of the Covid-19 pandemic ravaged the fashion industry.
Revenue for the six months to August 31 fell to US$38.7 million, 30.8-per-cent lower than the same period last year, while gross profit fell 32.1 per cent to $24.24 million.
The impact of Covid-19, which severely hit Le Saunda’s main markets of Hong Kong, Mainland China and Macau, led to a $4.4 million overall loss.
“Overall, during the first half of the financial year, the group changed from profitable to loss-making,” the business said.
“The group made timely adjustments to its strategy to reduce daily expenses, including a 25-per-cent pay cut for all directors for a period of six months from March and … tapped into emerging Mini Programs and social-media marketing platforms to expand its online sales channels.”
However, the business’ e-commerce revenue also took a significant hit, down 15.7 per cent during the six months.
And now, with the worst of the virus seemingly behind it, Le Saunda is looking to learn from the “new normal” that has developed – investing in the development of goods in the athleisure space, as customers become more health conscious, as well as sales and marketing on social media to better leverage social commerce and reach a younger consumer base.