Image credit: Tse Sui Luen
The Hong Kong based jeweler Tse Sui Luen has reported an $11.6 mn loss for the year ended 31 March. Sales declined by 28.3 per cent to $376 mn. The previous year the company turned a profit of $7 mn, as per a report in retailnews.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, minimizing staff costs and administrative expenses, and streamlining its store network.
During the year, the turnover of 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, before the social unrest and coronavirus pandemic. 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.
Online sales grew 17.2 per cent during the year, boosted by a presence on some marketplaces and growth of its direct-to-consumer site.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
