TSL Sees Rebound in Full-Year Results

Hong Kong jeweler Tse Sui Luen (TSL) recorded a profit for the full fiscal year, as it continued to transform its business model and optimize its store network.

Profit recovered to HKD 114.3 million ($14.6 million) for the 12 months that ended March 31, the jeweler said Monday. That compared to a loss of HKD 197.8 million ($25 million) a year earlier.

The company’s implementation of its transformation strategy, including lowering administrative expenses and cost optimization, led to improved same-store sales performance, it said. Favorable changes in global economic factors, such as the rise in gold prices and the decline in federal fund rates, also helped boost revenue, TSL explained.

Group revenue for the year slid 1.9% to HKD 1.68 billion ($214.2 million). In Hong Kong and Macau, sales rose 16% to HKD 563.2 million ($71.8 million), while those on the mainland fell 12% to HKD 934.3 million ($119.1 million). 

The Hong Kong jewelry market demonstrated steady improvement throughout the year, thanks to increased inbound tourism, improving consumer sentiment, and a more stable retail environment. Meanwhile, steady tourism from the mainland continued to support the group’s growth in Macau.

TSL reduced its self-operated store network in mainland China by 40% to 21 locations, closing underperforming locations and converting some outlets to franchises. The streamlined portfolio, focused on high-performing flagship stores, drove same-store sales and allowed the company to concentrate on premium services and brand positioning.

TSL operated 371 franchise stores as of March 31, with 120 new openings during the year. The group remains cautiously optimistic, even as US tariff policies and geopolitical tensions have contributed to a complex global environment, it said.

“The franchise model has proven to be a vital component of the group’s business transformation, which enables a robust sales-network expansion via an asset-light model,” the jeweler commented. “Moreover, the progress affirms that the group’s transformation strategy is on the right track, which demonstrates tangible and sustainable growth.”

Image: A TSL store in Hong Kong. (Shutterstock)