Le Saunda reports another annual loss

(Source: Le Saunda/Facebook)

Hong Kong-listed footwear company Le Saunda has posted another year of loss amid a drop in revenue.

For the year ended February 29, loss attributable to the company’s owners was RMB23.5 million (US$3.3 million), which was less than half the previous year’s deficit of RMB50.3 million.

Annual revenue was down 2.9 per cent to RMB401.4 million, with declines recorded in Mainland China, Hong Kong and Macau. 

The company attributed the declines to the slow recovery of the retail markets, volatile economic activities, and weak consumer confidence.

Meanwhile, annual same-store sales grew 11.7 per cent thanks to the flexible marketing strategy in response to the weak market environment.

The firm actively optimised its physical store network in Mainland China and closed its cosmetic business in Hong Kong, with selling and distribution expenses down 14.7 per cent year on year. Inventory also decreased by 14.5 per cent.

At the end of the fiscal year, Le Saunda had 283 physical stores in Mainland China – its key market – down by 43 locations compared to the prior year.

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