Salsa last year earned 14% of the expected retail market stabilized rents down the proportion of ground floor
Salsa International (178) distributed its annual results for the year ended March this year, with net profit falling 14.8% yoy to $ 327m, basic earnings per share of 11.2 cents, with a final dividend of 8 cents, Late special dividend. Salsa Chairman and Chief Executive Officer Guo Shaoming said that from the beginning of this year to early May, Hong Kong sales performance is ideal, but slowed down last month, it is estimated that by the return of the 20th anniversary of the national leadership to Hong Kong, customs procedures, customers reduce shopping, expect only Brief situation. He believes that the retail industry has bottomed out, but the slowdown, expected the second half of the market stable. Due to the recent rent down, plans to increase the proportion of ground floor.
Guo Shao-ming also refers to a number of airlines and hotels to promote preferential return, hoping to stimulate visitors to Hong Kong consumption, improve sales performance. Mainland business also fell, the company’s turnover during the period of 7.746 billion yuan, down 0.58% year on year, but the overall turnover of China’s business in local currencies fell 3.9 percent to 276 million yuan, same-store sales fell 3.4% , The loss of 15.1 million yuan during the year. Hong Kong and Macao market turnover of 6.266 billion yuan, similar to the same period last year, same-store sales fell 1.8%. During the year, there were 115 shops in Hong Kong and Macau retail outlets.
Hong Kong business, Guo Shaoming said that there are 4 to 5 branches have signed a contract and ready to shop, of which two for shop for shop. The company will be more from the past floor to the ground floor shop, because the current rent down. The company adjusted its shop network last year. During the transition period, the company needed to shop and pay the overlapping rents. The peak monthly rents involved amounted to $ 3.5 million. He expects rent cost control to have more fruitful results in the next fiscal year. Hong Kong and Macao region from April to June 11 this year, retail sales rose 3.6% year on year, while the same period fell 5.3%, same store fell 1.4%.
Gross margin declined from 43.3% last year to 41.7%. Sasha Financial Director Lu Kai said that the past two years, gross margin declined, but the second half gross margin decline has narrowed. The decline was mainly due to the fact that the past was selling more high-margin European and American products, but the strongest growth in recent years is the low-priced Japanese and Korean products. Compared with an average of 2.8% per annum last year. Mainly due to the lower unit price of Korean products increased, and because of the current customer shopping for their own use, a large number of goods for the purchase of the situation, I believe no longer, so that the amount of each transaction fell.
To push their own brand to take the high route
Products, the Korean product peak of 23%, but South Korea’s product sales involved in the “Sade" incident, the company to increase the Japanese and Taiwan products to make up for the loss, the overall impact is not. Another company intends to increase its own make-up brand “Eleanor", the brand as a high price line, the brand is applying for the Mainland health inspection related license, the application process is expected to take 10 months to one year.
For this year did not send the end of special interest, Guo Shaoming said to move the warehouse, involving more than 50 million yuan, but also need to reserve 35 million yuan for the development of online shopping platform for future development set the foundation, emphasizing the company dividend ratio is still high.