Tse Sui Luen Jewellery records 40.6% profit dive on reduced China tourism
Hong Kong's Tse Sui Luen Jewellery saw consolidated turnover drop by 8.6% in the year-ending February 29. Total profit also took a dive, falling 40.6% to HK$23.6 million (US$3.038 million).
The group - one of Asia's largest jewellers - said the decline was mainly attributable to a significant year-on-year drop in retail sales activity in Hong Kong resulting from a reduction in the number of tourists visiting from Mainland China.
Retail sales in Hong Kong and Macau dropped by 21.9%, with same-store sales sliding 24.3%, according to financial documents released.
The firm added it managed to limit the drop in overall consolidated gross margin to 1% from 46.5% to 45.5% for the year.
Tse Sui Len did witness encouraging growth in Mainland China, particularly in the franchise business. The group held 187 self-run stores on the Mainland at year end, while the number of franchised outlets rose from 34 to 83 during the 12-months.
“Despite facing tougher market conditions, we are elated by the growth of business in mainland China during the year, namely the eye-catching expansion of the franchised network and the rapidly growing eBusiness," said Tse Sui Luen chairman and CEO, Annie Yau Tse.
The group's e-commerce division recorded a 584% growth(with its comparative figure from mid-2014 to February 2015).
Tse Sue Len joined a new channel, VIP.com during the year, adding the new platform to its e-business fold, which includes T-Mall and JD.com.
The jeweller said it will continue to explore 'suitable channels' for increased growth.
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