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Tag: Le Saunda

  • Le Saunda in Red: Unsteady Chinese Market Influences Major Losses for Hong Kong Footwear Retailer

    Le Saunda in Red: Unsteady Chinese Market Influences Major Losses for Hong Kong Footwear Retailer

    Le Saunda, a prominent footwear retailer in Hong Kong, recently revealed disappointing financial results for the first half of the fiscal year. The company’s performance reflects a troubling trend, marked by widespread losses across its operations.

    Significant Revenue Drop

    During the six months ending on August 31, Le Saunda’s revenue slumped by 36 per cent. The figures dwindled from RMB146.9 million ($20.66 million USD) to RMB95.8 million ($13.47 million USD).

    Gross Profit and Shareholder Returns Decrease

    The retailer’s gross profit also bore the brunt of financial instability, experiencing a 30 per cent reduction. It plunged from RMB79.4 million ($11.2 million USD) to RMB55.6 million ($7.8 million USD). Meanwhile, shareholder returns nose-dived to a significant loss of RMB31.4 million ($4.4 million USD).

    Reduction in Physical Stores

    The adversity further reflected in the company’s physical presence, with Le Saunda reporting a net reduction of 133 stores in Mainland China, its primary retail market, by the end of the period. This leaves the retailer with only 91 operational stores as against a markedly higher number in the same period from the previous year.

    Global Economic Uncertainties

    Le Saunda attributed its underperformance to a number of factors. The first half of 2025 witnessed frequent fluctuations in international trade relations. Coupled with a sluggish retail environment and low consumer confidence, these developments fostered global economic uncertainties. The company indicated that these conditions have undermined its future growth prospects.

    Questions & Answers

    What was Le Saunda’s revenue for the six months ending August 31?
    Le Saunda’s revenue for this period was RMB95.8 million ($13.47 million USD), marking a 36% drop from the previous year.

    What is the extent of Le Saunda’s gross profit reduction?
    Le Saunda experienced a significant 30% reduction in gross profit, going from RMB79.4 million ($11.2 million USD) to RMB55.6 million ($7.8 million USD).

    How has Le Saunda’s physical store presence been affected?
    Le Saunda reported a net reduction of 133 stores in its key market, Mainland China, leaving it with 91 operational outlets.

  • Le Saunda sales continue to fall

    Le Saunda sales continue to fall

    Hong Kong-headquartered shoe retailer Le Saunda shut down 52 stores during the year to February as it worked to mitigate falling sales in the wake of the Covid-19 pandemic.

    The embattled shoe retailer recorded a profit for the full year of US$16.6 million, although this was entirely due to material gains on the return of its former manufacturing plant at Shunde in Guangdong for which Le Saunda booked a material gain of $25.4 million. Local government grants to mitigate the impact of the pandemic added around $1.4 million to income.

    Total revenue for the year fell by 19.3 percent to US$97.2 million due to store closures and trading restrictions related to government measures to slow the spread of Covid.

    Efforts to reduce overheads across the business resulted in selling and distribution expenses falling 28.5 percent to $37.4 million. The company also managed to cut inventory by 44.1 percent year on year, some of that relating to fewer raw materials after the Shunde plant was closed.

    In a stock exchange filing, chairman James Ngai said the pandemic led to a “severe winter” for greater China’s retail industry.

    Le Saunda responded by outsourcing manufacturing, closing unviable stores, tapping into social commerce, and expanding online sales channels through the “livestream shopping” model. It launched the Le Saunda Y collection online, aimed at catering to the preferences and buying behavior of younger female consumers, and upgraded its loyalty scheme to a WeChat Mini Program.

    “During the pandemic, the group was determined to innovate, grasp the pulse of the market and introduce new elements to its brands, so as to maintain the competitive edge of its brands and its leading position in the female footwear market,” he said.

    As at the end of February Le Saunda had 297 stores (down 34) under its core branding, and 40 Linea Rosa stores (down 12).

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  • Property deal set to save Le Saunda’s bottom line

    Property deal set to save Le Saunda’s bottom line

    Hong Kong-listed shoe retailer Le Saunda says same-store offline sales rose by 13.8 percent in the February quarter after it rationalized its store network.

    In a positive profit alert issued to the Hong Kong Stock Exchange, chairman James Ngai said group sales rose 5.2 percent year on year after a net 52 stores closed in Mainland China, Hong Kong, and Macau. As at February 28, the company had 389 outlets remaining, 347 of them self-owned across the three markets, and 42 franchised on the mainland.

    The company said a preliminary review of its full-year accounts shows the company “may” have recorded a profit, which would mark a significant turnaround from a US$4.7 million loss in the prior year.

    However, that was mainly attributable to the completion of the effective sale of its former factory in Shunde, Guangdong which it closed last May, and reached an agreement with the local government to hand back for $30 million. Le Saunda made a strategic decision to discontinue manufacturing and to contract production out to third parties.

    While in-store sales are on the rise after several years of decline, Le Saunda’s e-commerce business continues to underperform, with sales down 8.4 percent year on year in the fourth quarter.

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  • Le Saunda roams from profit to loss

    Le Saunda roams from profit to loss

    Chinese footwear retailer Le Saunda saw revenue and profit fall by more than 30 percent in the last six months as the impact of the Covid-19 pandemic ravaged the fashion industry.

    Revenue for the six months to August 31 fell to US$38.7 million, 30.8-per-cent lower than the same period last year, while gross profit fell 32.1 percent to $24.24 million.

    The impact of Covid-19, which severely hit Le Saunda’s main markets of Hong Kong, Mainland China and Macau, led to a $4.4 million overall loss.

    “Overall, during the first half of the financial year, the group changed from profitable to loss-making,” the business said.

    “The group made timely adjustments to its strategy to reduce daily expenses, including a 25-per-cent pay cut for all directors for a period of six months from March and … tapped into emerging Mini Programs and social-media marketing platforms to expand its online sales channels.”

    However, the business’ e-commerce revenue also took a significant hit, down 15.7 percent during the six months.

    And now, with the worst of the virus seemingly behind it, Le Saunda is looking to learn from the “new normal” that has developed – investing in the development of goods in the athleisure space, as customers become more health-conscious, as well as sales and marketing on social media to better leverage social commerce and reach a younger consumer base.

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  • Struggling Le Saunda warns of yet another loss

    Struggling Le Saunda warns of yet another loss

    Late last month, embattled Hong Kong-based shoe retailer Le Saunda announced its third consecutive annual loss. Yesterday it flagged yet another, at least for the first half.

    In a stock-exchange filing, Le Saunda’s board advised that during the three months to May 31, the group’s self-owned offline retail business saw same-store sales decline 32.7 percent and total sales down 38.2 percent, due to widespread store closures in the last year. Online sales fell 16.4 percent.

    While nonspecific about the scale of the loss in the current half-year, chairman James Ngai said the results would be impacted in part by a US$5 million redundancy bill related to the closure of its factory in Shunde, Guangdong last month. The company is now contracting out all production to third-party suppliers.

    However the result was largely caused by the coronavirus pandemic, he said. “The expected net loss is primarily attributable to the significant decrease of the group’s total retail sales due to the adverse impact on the retail market that brought by the outbreak of Covid-19 epidemic since late January.”

    As at the end of May, Le Saunda had 414 retail outlets trading in Mainland China, Hong Kong and Macau, 72 fewer than a year earlier. The majority – 368 – were self-owned stores, the balance franchised outlets on the mainland.

    During the first half of last year, Le Saunda was showing signs of improvement, recording a profit of $337,000, however in June ongoing protests inHong Kong saw retail sales decline as shops were often shuttered and inbound mainland tourist numbers declined.

    Le Saunda trades under the brands Le Saunda, Linea Rosa, Pitti Donna and CNE.

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  • Le Saunda profit downhill as store network slashed

    Le Saunda profit downhill as store network slashed

    Le Saunda sales slumped in the latest quarter as the Hong Kong footwear retailer slashed its store network.

    In a stock-exchange announcement covering the fourth quarter, Le Saunda sales declined by 30.9 percent for the three months to February. It also noted a same-store sales decline of 18.5 percent, compared to last year.

    Le Saunda currently operates 441 outlets in Mainland China, Hong Kong and Macau, including 55 franchised outlets – 85 fewer stores than it held as of February last year.

    Despite the drop in sales at Le Saunda’s physical stores, the firm’s e-commerce business saw a total growth of 7.2 percent compared to last year.

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  • Slimmed-down Le Saunda shows signs of improvement

    Slimmed-down Le Saunda shows signs of improvement

    Slimmed-down Hong Kong shoe retailer Le Saunda is showing early signs of improvement despite the recent decline in the territory’s retail sector.

    Figures for the November quarter show same-store sales growth of 7.7 percent in its self-owned network when compared with the same period last year. Total sales, however, were down 11.1 percent, reflecting a rationalization of the store network. The group ended the quarter with 447 stores in Mainland China, Hong Kong and Macau, a net decrease of 118.

    As earlier reported, sales for the first half of this year fell by 18.2 percent

    At the time, Chairman James Ngai said that given the current “gloomy economic conditions” Le Saunda would continue to optimize its distribution network, close down low-profit stores and take “a cautious and prudent approach in business expansion”.

    The picture was not so bright in the online business in the three months to November 30, however, where sales fell 20.7 percent year on year.

  • Le Saunda turns a profit but faces inventory challenge

    Le Saunda turns a profit but faces inventory challenge

    Shoe retailer Le Saunda is planning to boost its on-sale activity as it battles to reduce its inventory in the wake of falling sales.

    But the company has returned to profitability despite tightened margins in the first half year.

    The company’s sales fell by 18.2 per cent to RMB376.7 million (US$53.5 million) in the six months to August and gross profit fell 16.9 per cent to RMB241.2 million ($34.3 million). Profit attributable to shareholders was RMB2.4 million ($341,000) compared to a loss in the same period last year of RMB9.6 million ($1.36 million).

    Chairman James Ngai said that given the current “gloomy economic conditions” Le Saunda will continue to optimise its distribution network, close down low-profit stores and take “a cautious and prudent approach in business expansion”.

    “It is expected that the group will have a relatively high inventory level for a certain period of time. To maintain a good cash flow condition, the group will boost its sales in the second half of the year. As a result, the group’s gross profit margin and net profit margin will be affected,” he said.

    In the six months to August, the group achieved a gross profit margin of 64 per cent, representing a 0.9-percentage-point improvement year on year.

    That was achieved despite reducing inventory by about 7 per cent, however inventory turnover increased by 58 days to 378 days. Ngai says the group will be focusing on controlling the age of its inventory. As of August 31 about 75 per cent of finished goods had an age of less than one year.

    During the period, same-store sales of Le Saunda shops in Mainland China improved by 3.7 per cent, but the top-line decline was caused by the closure of about 150 outlets.

    In Hong Kong, sales fell 35 per cent as protests caused stores to temporarily shutter and mainland tourists stayed away. The company closed one store during the half year, leaving it with nine in Hong Kong and Macau.

    “The protest activities in Hong Kong are expected to carry on in the short term and it is inevitable that the economy will enter a recession. The group will closely monitor market conditions and strive for better performance in a prudent and pragmatic manner,” said Ngai.

    Online sales fell by 22.6 per cent as the market became increasingly fragmented due to new players launching and consumers increasingly shopping on alternative e-commerce channels such as apps.

    “Facing the market challenges, the group is developing multichannel operations, exploring new resources on e-commerce platforms and continuously improving supply chain efficiency,” he said.

    Le Saunda’s major proprietary brands include Le Saunda, Le Saunda Men, Linea Rosa, Pitti Donna and CNE.

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  • Le Saunda CEO resigns and on the search

    Le Saunda CEO resigns and on the search

    Le Saunda CEO Cheng Wang has resigned and will leave the company on October 16.

    According to a stock exchange filing, Cheng is leaving in order to pursue “his other personal affairs”. The Le Saunda CEO will also vacate his seat on the shoe retailer’s board.

    On the same date, another director, Marces Lee Tze Bun will also resign. The company said there was no matter with respect to either person’s departure that needed to be brought to the attention of the company’s shareholders.

    The statement coincided with a positive profit warning issued by the company.

    Based on unaudited management accounts, the company expects a consolidated profit attributable to shareholders for the first half-year of RMB 2 million (US$280,000), compared to a loss of RMB 9.585 million ($1.34 million) in the same period last year. The turnaround was due to improved sales Mainland China stores, reduced administrative expenses due to a restructuring of regional offices and the closure of underperforming stores across its network.

    Sales in Le Saunda’s self-owned stores (excluding e-commerce) were down by 6.5 percent in the second quarter, but same-store sales were up 17.5 percent, reflecting a streamlined store network. Online sales, however, plunged 28.4 percent.

    Le Saunda has shuttered 156 outlets between the end of the second quarter last year and August 31 this year, leaving its with 465 outlets in Mainland China, Hong Kong, and Macau. All but 56 of those are self-owned, as opposed to franchised.

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  • Le Saunda closes stores as profit goes red

    Le Saunda closes stores as profit goes red

    Struggling shoe and accessories retailer Le Saunda has shuttered more than 100 stores on Mainland China in the last year as it tries to reduce overheads and return to profit. Group sales fell 14.4 per cent in the first half of this year, to RMB 460.4 million, (US$66.1 million), gross profit margin slipped 3 per cent and the company recorded a loss of RMB 9.6 million (US$1.4 million), compared with a profit of RMB22.9 million in the same period last year.

    The company blamed a slowing of retail sales in Mainland China for its poor result, with same-store sales down 10.2 per cent, as well as a decline from the closure of unprofitable stores.

    On the mainland, Le Saunda shuttered 96 of its self-run stores, cutting its network back to 549 and a further eight franchised outlets were closed, leaving a total network of 611.

    In Hong Kong and Macau, where sales rose 4.5 per cent, it closed one store leaving 10.

    Le Saunda chairman James Ngai said the company’s reduced gross profit margin was a result of lowering prices to meet market demand. The growth rate of fashionable ladies’ footwear sector had “slowed down significantly” on the mainland, Le Saunda’s core market, he said.

    “With a change in customers’ buying behaviour, the e-commerce segment experienced rapid expansion, striking a tremendous hit on the sales of traditional retail stores.

    “To cope with the ever-changing market environment, the group is fully committed to enhancing product quality, promoting a new pricing model, enhancing consumers’ shopping

    experience and thereby improving same-store sales,” said Ngai.

    “Facing the challenges posed by the economic environment, the group is determined to [return] to the basic principles of retailing, which include adjusting the pricing strategy, closing down low-profit stores, and actively exploring its franchise and wholesale businesses.”

    With Hong Kong and Macau sales up, totalling RMB 30.7 million, Ngai said the group would pursue growth there “in a proactive yet prudent manner and establish new stores in desirable locations”.

    Le Saunda designs manufactures and retails shoes and accessories under the Le Saunda,

    Linea Rosa, Pitti Donna and CNE brands.

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  • Le Saunda sales continues to fall

    Le Saunda sales continues to fall

    It has been a year of losses for fashion group Le Saunda Holdings, which designs, develops, makes and retails women’s and men’s footwear handbags and accessories.

    Total Le Saunda sales fell by 17.2 per cent for the year ended February 28, reaching RMB1.13 billion (US$176 million), while consolidated gross profit dropped by 18.1 per cent to RMB743.5 billion.

    During the year, the retail channel through department stores in Mainland China remained feeble, says the group. Both topline Le Saunda sales and like-for-like sales fell. The group recorded a gross profit of RMB743.5 billion, a decline of 18.1 per cent, while the gross profit margin shrank to 65.8 per cent, down 0.7 points.

    The company sells in Mainland China, Hong Kong and Macau, its major proprietary brands being Le Saunda, Le Saunda Men, Linea Rosa, Pitti Donna and CNE.

    ‘Many challenges’

    During the year, the group initiated a series of promotional and brand marketing campaigns to mark its 40th anniversary. It also launched online leisure brand Pitti Donna.

    Le Saunda says the growth of total retail sales on consumer goods slowed down in China during the year, still presenting many challenges for traditional retail businesses.

    “In particular, the rapid development of e-commerce posed the greatest threat, and the fierce competition among traditional retail businesses resulted in extensive close-downs and tenancy surrenders.

    Because of the economic challenges, the group adjusted its strategy to close down low-profitability stores and re-adapted the e-commerce model. At the end of the year, the group had a retail network of 687 stores in Mainland China, Hong Kong and Macau, a net reduction of 109 outlets. The number of self-owned stores dropped by 101, while the number of franchised stores decreased by eight.

    At year-end, there were 493 core brand Le Saunda stores and 35 Le Saunda Men stores,
    representing net reductions of 70 and 17 stores respectively. There were two fewer stores for its high-end fashion brand Lina Rosa, taking the total to 72 stores, while there was a 21 drop in CNE stores, ending up with just one.

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  • Le Saunda loses anniversary shine

    Le Saunda loses anniversary shine

    In its 40th anniversary year, footwear group Le Saunda Holdings has little to celebrate with falls in sales and profits for its first half.

    In releasing its unaudited results for the six months to the end of August, the company says it has been hit by continuing sluggish markets in China and Hong Kong.

    Total revenue dropped by 17.4 per cent year on year to RMB537.7 million (US$81 million), while its overall gross profit margin fell 1.2 points to 66.1 per cent. Consolidated profit attributable to the owners of the company plunged 22.1 per cent to RMB32.4 million.

    In Mainland China, the total retail revenue of the group decreased by 17.3 per cent to RMB508.4 million, attributed mainly to an ongoing weakness in the overall retail market, negative growth in same-store sales and an acceleration in closing underperforming stores. Another factor was consumer demand being restrained by the ongoing booming property market.

    As shop rentals remain high in Hong Kong and Macau, the operating loss grew there with sales falling 19.2 per cent to RMB29.4 million. The group has adopted cost-cutting measures, including closing unprofitable stores and leasing cheaper office premises.

    Meanwhile, the group says it has been vigorously tapping into online retail business, expanding its online exclusive products as well as supply of men’s footwear and handbags. During the six months, the group’s e-commerce revenue dropped by about 30.6 per cent because of it becoming continuously more expensive to acquire online customers.

    A series of promotional and brand-marketing campaigns were held during the first half to celebrate the company’s 40th anniversary, and an online leisure brand, Pitta Donna, was launched.

    Le Saunda says Mainland China is still its key retail market. At the end of August it had 726 stores in China, Hong Kong and Macau – 110 fewer than at the same time last year. Self-owned stores dropped by 96 while there were 14 fewer franchised stores.

    There were 518 Le Saunda stores and 40 Le Saunda Men stores, down respectively by 86 and 17 stores. The number of high-end Linea Rosa stores was steady at 72, while CNE stores decreased by nine to 13.

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  • Le Saunda sales dips 8pct y-o-y in Q3

    Le Saunda sales dips 8pct y-o-y in Q3

    Footwear manufacturer and retail company Le Saunda Holdings announced a decrease of 8 per cent in its total retail sales year-on-year for the third quarter of its 2016/2017 financial year, according to a filing with the Hong Kong Stock Exchange.
    Same store sales of the retailer also saw a 7.1 per cent drop year-on-year for the quarter, which when coupled with a 40.5 per cent year-on-year drop in the Group’s e-commerce business sales led the group’s diminished performance during the period compared to last year.

    As at the end of the group’s financial quarter, November 30, Le Saunda had a total retail network comprised of 822 outlets spread throughout Mainland China, Hong Kong and Macau. However, on the back of the declines in sales, the Group has closed 75 outlets compared to the same period of last year.

    Of the total outlets, 737 are in self-owned and in operation in Mainland China, Hong Kong and Macau while 85 outlets are operated under franchising agreements in Mainland China.

    According to the Group’s previously launched interim financial report, its total revenue for the first six months of fiscal 2016/2017, from March to August of this year, showed a decline of 13.8 per cent year-on-year to RMB651.2 million (US$94 million) from RMB756 million during the same period of the previous fiscal year.

    In addition, the Group’s profit dropped 24 per cent year-on-year to RMB45.6 million during the first half of the fiscal year.
    The Group is also engaged in the design and development of handbags and fashion accessories in Mainland China, Hong Kong and Macau.

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  • Shoe manufacturer Le Saunda down at heel for fiscal year

    Shoe manufacturer Le Saunda down at heel for fiscal year

    Le Saunda Holdings Limited – a company primarily engaged in the manufacture and retail of Le Saunda ladies and men’s shoes, CNE footwear (an O2O brand) and Linea Rosa high-fashion footwear brand – announced a consolidated profit of RMB122.1 million (MOP149.42 million) for the fiscal year ending February 2016, in a filing on the Hong Kong Stock Exchange. This represents a 35.5 per cent year-on-year drop for the fiscal year compared to 2014/2015’s RMB189.3 million.

    The group has a total of 896 stores, located mostly in Mainland China, with 12 operating in Hong Kong and Macau.
    Sales in Hong Kong and Macau plunged 29.2 per cent year-on-year, at RMB110.7 million as compared to the RMB156.4 million seen in the previous fiscal year, causing a change in the Hong Kong and Macau business units ‘from profitable to making loss’ – a loss of RMB10.596 million – notes the filing. Over the fiscal year eight stores in the two SARs were phased out, noting that ‘after the shop rental in Hong Kong adjusts back to a normal level, the opportunities of opening new stores would appear again.’

    The group note opines that it is ‘the pattern of consumers’ behaviour that has been changing,’ despite the fact that ‘urban disposable income is actually on the rise […] ongoing weakness is noted in consumer spending.’

    For the fiscal year in question the group’s total revenue decreased by 3.7 per cent year-on-year to RMB1.621 billion. For the Macau segment total revenue amounted to MOP16.52 million, a 47.4 per cent drop compared to the MOP31.41 million registered in the previous fiscal year.

    A total drop of 0.9 per cent was seen in the group’s retail sales in Mainland China, amounting to RMB1.51 billion, which was noted as ‘better than the overall decline in the Group’s revenue,’ in the filing, attributable to a ‘stable loyal customer base brought by the Group’s reputation of products with “sophisticated styles with top quality”,’ as well as ‘consistent moves to close underperforming stores and open new ones to drive sales,’ complimented by the ‘launch of popular casual designs with elements favoured by young people to meet the market demands . . . [and] . . . a higher ratio of repeat purchases benefiting from innovative marketing approaches on both online and offline channels to facilitate close interaction with VIP customers.’

    Future predictions note that ‘the Group anticipates the lacklustre sentiments prevailing in the retail market will last for one to two years’ and that ‘retailers will still face enormous challenges ahead.’ To conquer this, the group will focus on: ‘formal footwear for the medium to high-end market’ as well as focusing on the product mix to ‘explore the young-line products with unique functional and fashionable items’. La Saunda also seeks to transform itself from a vertically integrated offline retailer to ‘an omni-channel operator which is highly data-oriented,’ as well as to ‘introduce a new retail model with swift O2O deployment,’ notes the filing.

    The group employs 5,286 people, of whom 150 are based in Hong Kong and Macau.

  • Le Saunda sales slip

    Le Saunda sales slip

    Footwear retailer Le Saunda says same store sales in its own stores slipped eight per cent in the third quarter.

    But the company’s online turnover soared 26.7 per cent reflecting rising popularity of online shopping across Greater China.

    Total sales declined 6.1 per cent year on year.

    As at the end of November Le Saunda had 897 retail outlets in Mainland China, Hong

    Kong and Macau – 13 more than at the same time last year. These included 789 self-owned outlets in Mainland China, Hong Kong and Macau and 108 franchised outlets in Mainland China.

    Le Saunda has only released unaudited operational data for its retail business at this stage, not detailed financial data.

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