Sa Sa International has reported a drop in sales and profits for its last fiscal year, hurt by fewer tourists from mainland China.
For the year ending 31 March 2016, net profit dropped by 54% to HK$383.5m, while sales in Hong Kong and Macau fell 14.2% to HK$6.32bn, with like-for-like sales down 11.8%. Sales on the mainland were down 9.6% to HK$303.8m, on a LFL fall of 9.9%, with a net loss of HK$39.6m.
The cosmetics retailer said it was hurt by the 8.6% drop in mainland tourist traffic to Hong Kong, hurt by the strength of the Hong Kong dollar. Sa Sa also noted: “This trend is likely to continue in the coming year. Local consumer sentiment is expected to remain weak due to a slowdown in the Hong Kong economy, poor stock market performance and a declining property market”.