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By
Reuters
Published
Nov 23, 2016
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Hong Kong cosmetics chain Sa Sa's profit plunges on fewer China tourists

By
Reuters
Published
Nov 23, 2016

Hong Kong skin care and cosmetics retailer Sa Sa International Holdings Ltd said on Wednesday its half-year net profit plunged 37.3 percent as a drop in mainland tourists to the city and a stronger currency hit consumer sentiment.


Sa Sa had warned in October it expected half-year profit to fall as much as 45 percent due to a decline in sales and gross profit margin at its Hong Kong and Macau operations - Sa Sa



Sa Sa's net profit fell to HK$96 million ($12.4 million) for the six months ended in September from HK$153 million a year ago. Revenue fell 4 percent to HK$3.63 billion from HK$3.78 billion a year earlier.

Retail sales in Hong Kong and Macau fell 3.6 percent, while gross profit margin decreased to 41.2 percent from 42.9 percent. It trimmed its overall retail network to 283 from 291.

Sa Sa had warned in October it expected half-year profit to fall as much as 45 percent due to a decline in sales and gross profit margin at its Hong Kong and Macau operations.

 

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