Stelux falls into red in H1

Watch and optical retailer Stelux Holidings International Ltd. saw its interim results fall into the red as at September 30, posting a net loss of HK$33.1 million (US$4.12 million) from the profit of HK$105.2 million one year ago, it tinformed Hong Kong Stock Exchange last week.
During the six months, the company generated a total turnover of HK$1.77 million, down 10.7 per cent from one year ago due to turnover from its two major subsidiaries, City Chain and Optical 88, dropping 12.1 per cent and 10.5 per cent year-on-year to HK$957.9 million and HK$ 579.1 million, respectively.
The company explained that the notable decrease in the turnover of City Chain is attributable to the ‘sluggish turnover performance’ in Hong Kong, Macau and Southeast Asia.’
According to the filing, City Chain’s watch retail businesses in the two Special Administrative Regions posted a year-on-year decline of 14.2 per cent in turnover for the six months, amounting to HK$646.6 million, compared to HK$753.4 million one year ago.
The decrease is attributed ‘to reduced tourist spending, shop consolidation measures, and a high comparable base [from one year ago] when the Group achieved record breaking monthly sales,’ the retailer claimed.
Meanwhile, the company’s optical business under Optical 88 fell 8.9 per cent year-on-year in terms of turnover, raking in some HK$407.1 million.
‘The turnover performance was impacted by the softened demand from local customers and tourists but gross profit margin remained healthy and stable,’ Stelux said.