Tse Sui Luen yearly profit down 40.6 pct

By
macaubusinessdaily

Sales drops in Hong Kong and Macau drove jewellery retailer Tse Sui Luen (TSL) Jewellery (International) Ltd’s annual net profit to a drop of 40.6 per cent year-on-year, the company announced in a filing with the Hong Kong Stock Exchange yesterday.
For fiscal year ended February 29, the jewellery retailer’s net profit amounted to HK$23.6 million (US$2.9 million), plunging some HK$16.2 million from one year ago, with earnings per share for the year down to 11.2 HK cents.
‘The decline in sales and profit attributable to owners of the Company for the year was mainly attributable to a significant year-on-year drop in retail sales activity in Hong Kong,’ the group announced in the filing.
According to its annual results report, the company’s revenue generated in Hong Kong and Macau slumped 25.4 per cent year-on-year to some HK$1.67 billion compared to HK$2.24 billion one year ago. It explained the fall is due to ‘a significant drop in the number of tourists visiting Hong Kong and Macau from Mainland China during the year; overall tourist and customers’ spending decreased as a result.’
As at the end of February, TSL operated 28 self-operated outlets in Hong Kong and another three in Macau.
Despite sales declines in the two Special Administrative Regions, the retailer saw its revenues in Mainland China increase 13.5 per cent year-on-year to nearly HK$1.8 billion compared to HK$1.58 billion for the financial year of 2014/2015. The segment also recorded same store sales growth of 1.5 per cent year-on-year.
The company credited the revenue increase in the Mainland to the rapid growth in the number of shops and expansion of the sales network of franchise business in the country. As at the end of February, TSL’s total number of self-operated outlets in China amounted to 187.
‘Driven by its fast expansion during the Year, the group believes that the franchising model in Mainland China will continue to be a major element to the growth of the Group’s turnover, brand development and profitability,’ the company noted.