THE WHAT? Sa Sa International expects first-half attributable profit to more than triple to over HK150million(US19.1 million), supported by stronger beauty retail sales across its core Hong Kong and Macao markets.
THE DETAILS The Hong Kong-listed beauty retailer expects attributable profit of more than HK$150 million for the six months ending September 30, compared with HK$50.2 million a year earlier. Sa Sa attributed the improvement to higher same-store sales, transaction volumes, average transaction values and units purchased per transaction across Hong Kong and Macao, alongside rapid growth in B2C online sales and profitability. The group previously reported first-quarter offline sales growth of 29 percent, including a 31 percent increase in Hong Kong and Macao and 15 percent growth in Southeast Asia. The performance follows Sa Sa’s withdrawal from physical retail in Mainland China as it concentrates resources on e-commerce and its stronger regional markets.
THE WHY? The forecast indicates that Sa Sa’s restructuring and market prioritisation strategy is improving operating performance, with stronger store productivity in Hong Kong and Macao and growing e-commerce profitability supporting the beauty retailer’s recovery.
Source: InsiderRetail
