Hong Kong Jeweler TSL Warns of Loss
May 03, 2021
RAPAPORT... Tse Sui Luen (TSL) expects to report a loss for the full fiscal year amid a drop in consumer demand during the first half.
The Hong Kong-based jeweler believes it will lose at least HKD 40 million ($5.2 million) for the year ending March 31, it said last week. That compares with a loss of HKD 90 million ($11.6 million) the previous year.
Consumer sentiment waned in all TSL’s operating markets due to Covid-19, the company noted. Although sales in China have recovered to almost pre-pandemic levels since May 2020, and have begun to improve in Hong Kong since September, this could not offset weakness in the first fiscal half.
“The coronavirus outbreak has impacted the global economy, and the group’s sales performance in all operating regions were greatly affected by the weakened domestic and external demands since the beginning of the financial year,” the company explained.
Discount-based promotions have also led to lower profits and hindered recovery, TSL said. However, the company has managed to cut costs by negotiating rent reductions with landlords and restructuring its store network.
TSL will publish its full-year results by the end of June.
Image: A Tse Sui Luen store in New Town Plaza, Hong Kong. (Wpcpey)
Article originally published on Diamonds.net here