RAPAPORT… Tse Sui Luen (TSL) has warned it will report a loss for the fiscal year, with sales hampered by a sluggish retail environment in greater China.
The Hong Kong-based jeweler expects a loss of at least HKD 80 million ($10.3 million) for the year ending March 31, it said last week. That compares with a profit of HKD 54 million ($7 million) the previous year. The company based the projection on its performance during the first 11 months of the fiscal year.
The slowdown, which began in July, is the result of a number of factors including the US-China trade war and prolonged social unrest in Hong Kong, TSL said. The COVID-19 outbreak has also impacted sales.
“The coronavirus outbreak in January 2020 has taken a heavy toll on the retail industry, dealing a severe blow to the Hong Kong and mainland China economies,” the company noted. “The group’s turnover was [affected] further by the weakest overall sales in February 2020, the traditional peak season of the retail industry…which is expected to drop by approximately 88% year on year.”
In an effort to cut costs, TSL has negotiated rent reductions with landlords, and plans to close some of its stores, it added.
The company will publish its full-year results by the end of June.
Image: A TSL store in Hong Kong. (Mangongchong)
WhatsApp
Email
Facebook
Twitter
LinkedIn