Sa Sa International has reported lower sales and profit for that last fiscal year due to unfavourable trends in Hong Kong and Macau – the group’s key markets.

The Hong Kong-listed beauty retailer saw turnover decrease 9.7 per cent to HK$3.9 billion (US$497 million) for the year ended March 31. 

The decline was attributed to the continuous outbound travel of residents from Hong Kong and Macau to Mainland China and abroad. This was coupled with a strong US dollar and increasing economic uncertainties brought by trade tariffs, leading to cautious spending by visitors to Hong Kong and Macau.

Hong Kong and Macau are the group’s key markets, accounting for more than 75 per cent of overall sales.

Specifically, turnover dropped 12.3 per cent in Hong Kong and Macau and 10.5 per cent in Mainland China, but rose 14.7 per cent in Southeast Asia.

Profit for the year slid 64.8 per cent to HK$77 million, which was in line with the board’s warning in April.

Offline sales fell 11.9 per cent, with improvement recorded in the second half, while online sales increased 1.2 per cent thanks to the growth of third-party e-commerce platforms in the Southeast Asian market.

The group ended the year with 84 stores in Hong Kong and Macau, 18 in Mainland China and 72 in Southeast Asia.

Management said they will closely monitor market changes and review its portfolio to adapt to the new trends and consumer preferences, among other initiatives.

“The goal is to achieve growth in both sales and gross profit while maintaining a stable gross profit margin, ultimately establishing a sustainable model to enhance profitability,” they stated.

For the first quarter ended June 15, the group has seen a 4.5 per cent increase in turnover, with growth recorded across all markets except Mainland China.