Asia’s cosmetics retail chain Sa Sa has achieved a 20.1 per cent increase in turnover to HK$1.9 billion (US$245 million) for the three months to June.

Sa Sa said it benefited from the growing demand for cosmetics and beauty products, particularly in Hong Kong and Macau where turnover rose 24.8 per cent.

Other markets, including the mainland China, Singapore, Malaysia and Taiwan, contributed a smaller 4.2 per cent growth.

Sa Sa opened four stores during the period – three in Hong Kong and Macau and one in Malaysia, taking its total to 264.

“Sales in the first quarter benefited from a low base last year and recorded stronger-than-expected growth on the back of increase in sales to both local residents and mainland China tourists,” said chairman and CEO Simon Kwok.

The company expects the second quarter to be more challenging against the background of a high comparable base and depreciation of currencies in the region, and in particular, the Japanese yen. However, it remains cautiously optimistic on its sales outlook, it says.

“We will continue with a disciplined and measured store expansion strategy to drive business growth,” said Kwok.