Hong Kong-based beauty retailer Sasa has reported double-digit declines in both sales and profit for the six months ended September 30, which management attributed to the unfavourable market conditions.
The group’s turnover decreased 10.4 per cent year-on-year to HK$1.92 billion (US$246.7 million). The retailer cited the “sluggish macroenvironment”, continued outbound travel impacting the Hong Kong and Macau markets, and dampened consumption by Mainland Chinese tourists entering Hong Kong and Macau.
Sales in Hong Kong and Macau fell 17.5 per cent to HK$1.4 billion, while sales in Mainland China rose 27 per cent to HK$311 million. Southeast Asia sales also rose 15 per cent following the group’s re-entry to Singapore.
On the bottom line, gross profit fell 14.1 per cent to HK$756.5 million and profit attributable to company owners slid 68 per cent to HK$32.4 million.
The group said it will focus on achieving sustainable profit amid current macroeconomic uncertainties by improving operational efficiency, driving margin growth across all retail channels and raising return on investment.
Last year, the group reported a 24.8 per cent increase in turnover as the borders between Hong Kong, Macau, and Mainland China reopened. However, headwinds in its core markets began this year, resulting in a 9.8 per cent sales slump in the first quarter.
