Tse Sui Luen Jewellery has reported a $11.6 mln loss attributable to shareholders for the year to March. Sales declined by 28.3 per cent to $376 mln. The previous year the company turned a profit of $7 mln, according to a report in insideretail.asia.
The company cited the trade dispute between the US and China, which weakened consumer sentiment in the company’s main markets, followed by social unrest on the streets of Hong Kong from June and then the ‘devastating’ impact of the arrival of Covid-19 from the end of last year, for the disappointing result.
Tse Sui Luen responded by negotiating rent relief with landlords, minimising staff costs and administrative expenses, and streamlining its store network.
Chairman Annie Yau said that in addition to those steps, the group adjusted its product portfolio and marketing strategies to stimulate sales and lowering its inventory level to reduce holding costs.
During the year, the turnover of the Hong Kong and Macau retail businesses decreased by 44.6 per cent and same-store sales fell by 41.6 per cent.
The group opened four new stores in Hong Kong it had committed at the beginning of the year, prior to the social unrest and coronavirus pandemic.
Self-run stores on the mainland recorded a year-on-year decrease of 20.8 per cent in sales and same-store sales fell by 21.3 per cent. The company opened 12 new self-operated stores and 78 new franchised stores, but there was a net gain of just 10 stores for the year as poor-performing outlets were shuttered.
Sales in Malaysia grew by 19.3 per cent through the year, despite the nationwide retail shutdown to halt the spread of Covid-19 from mid-March. The company now has six stores there.
TSL’s online sales grew 17.2 per cent during the year, boosted by a presence on several marketplaces and growth of its own direct-to-consumer site.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
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