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Tag: Optical 88

  • Citygate’s Outlets Hong Kong is ready

    Citygate’s Outlets Hong Kong is ready

    Citygate Outlets is ready for the summer.

    With over 80 international brands offering 30% to 70% discounts, the mall has collaborated with brands to bring its customers unique Summer Pop-ups, memorable experiences with special performances and rewards for its most loyal customers.

    Direction New-York for this Summer’s Pop-ups.

    Starting with a fresh breeze of air to break the summer heat, Citygate Outlet is showcasing Kate Spade New York’s Poppy Floral Collection in a Insta-worthy pop-up area. Following Kate Spade and its free popsicles comes Travel Destiny-themed Michael Kors’ pop-up. Popsicles will still be on the menu along with exclusive shopping privileges, heart-shaped balloons and a limited-edition gift, free with any in-store purchase.

    Malls are also engaging in customer experience.

    Citygate Outlets is bringing performers from around the world for a series of lively musical performances. From African master drummers Mamadou and Drum Jam to Japanese percussionist Kumi Masunaga or collaborations with the Ukulele Federation and Hula Association the mall is creating unforgettable instants for its customers. Shoppers will have the opportunity to give a try to playing drums and ukulele with performers and truly feel and live the beats and Hawaiian vibes.

    All the summer essentials are offered at the mall with limited discounts. Customers can get ready from head to toe with Havaianas’ flip-flops up to 40% off, Arena’s and Speedo’s pop-ups featuring swimsuits up to 65% off and all the essential summer accessories with sales promotions on Brands such as luxury watchmaker Breitling or designer sunglasses Optical 88.

    More surprises awaits the mall’s visitors. Indeed, as their shopping session comes to an end, consumers having reached a pre-defined amount of spending on the same day using their credit card or EPS during the promotion period will be eligible to redeem fashionable and practical travel gifts.

    The icing on the cake to end a memorable day.

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  • Stelux Holdings warns of annual loss

    Stelux Holdings warns of annual loss

    Stelux Holdings International has warned shareholders of an impending loss due to slow sales through its store network and narrower margins.

    The Hong Kong-listed retail company, which operates the Optical 88 and Egg eyewear chains and City Chain jewellers, said the closure of underperforming stores and a reduction of overheads has eased the loss, which it expects to be less than that recorded last financial year.

    It did not release an estimate.

    In the company’s half-year results, reported last November, Stelux’s turnover was down by 6.9 per cent to HK$1.3 billion (US$166.4 million) and gross profit margin fell from 59.6 to 58.1 per cent. Its first-half loss was down 15.2 per cent to $62 million.

    Stelux says it will report its full, March-year figures on June 21.

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  • Stelux Holdings slows down the bad trend

    Stelux Holdings slows down the bad trend

    While turnover and gross profit margin slid for watch/optical company Stelux Holdings International for its first half, it managed to cut back on its net loss.

    Group turnover was down by 6.9 per cent (6.3 per cent foreign-exchange neural) to HK$1.3 billion (US$166.4 million) and gross profit margin fell from 59.6 to 58.1 per cent. Group net loss reduced by 15.2 per cent to $62 million.

    Given the fragile retail environment, the group says it continued with consolidation measures to improve shop productivity. While group turnover fell by 6.9 per cent, largely because of an 11.3 per cent drop in shop number, same-store sales improved, particularly in Mainland China. Sales also stabilised in Hong Kong and Southeast Asia. Gross profit margin remained under pressure at 58.1 per cent, compared to 59.6 per cent in the same period last year.

    City Chain Group

    Turnover fell 11.1 per cent for the City Chain Group, with a loss before interest and tax (LBIT) of $37.7 million from $49.4 million. The group has about 260 stores in Hong Kong, Macau, Mainland China, Malaysia, Singapore and Thailand together with three online stores.

    The drop in turnover from $668.5 million to $594.4 million was because of a 17.9 per cent decrease in shop numbers.

    In response, the chain is undergoing a major transformation to attract both a younger and local clientele. New store layouts have been introduced in Hong Kong, Guangdong, and Thailand.

    Turnover for the chain in greater China fell by 12.5 per cent to $439.8 million while LBIT was down 11 per cent to $34.8 million.

    Same-store sales growth has also resumed in Hong Kong and Macau since August with a freshed store image and enriched brand portfolio. The closure of loss-making shops and the positive impact from the expiry of high rental leases contributed to a 19 per cent fall in operating costs. City Chain tapped into the e-commerce business in Mainland China a few years ago, with the turnover of its watch e-commerce business increasing by more than 60 per cent compared to the corresponding period last year.

    With store consolidation in Southeast Asia, turnover fell 7 per cent to $154.5 million. There was a 16.5 per cent drop in shop numbers. Nonetheless, LBIT narrowed significantly to $2.9 million from $10.3 million.

    EBIT for Malaysian stores more than tripled while LBIT in Singapore fell by 79 per cent. With sustained recovery in Thailand, both turnover and same-store sales growth were “satisfactory”.

    Optical 88 Group

    Optical 88 Group turnover decreased by 2.9 per cent with EBIT rising to $32 million from $15.2 million. The group has 194 shops throughout Hong Kong, Macau, Mainland China, Malaysia,  Singapore and Thailand delivering professional eyecare/eyewear products and services, as well as hearing products and services.

    Turnover eased by 2.9 per cent to $504 million with 7.6 per cent fewer shops. EBIT more than doubled from $15.2 million to $32 million.

    In greater China, Optical 88 had a marginal 0.7 per cent decline in turnover to $414.2 million, with 4.1 per cent fewer shops. EBIT rose by 16.8 per cent to $38.2 million.

    Southeast Asia business had a 11.7 per cent drop in turnover to $89.8 million with 10.2 per cent fewer outlets delivering a narrowed LBIT of $6.2 million.

    Turnover rose 13.5 per cent of Egg Optical Boutique with LBIT widening from $7.1 million to $13.6 million. There are more than 80 stores in Hong Kong, Mainland China and Southeast Asia
    together with an online store.

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  • Stelux sales slide in third quarter

    Stelux sales slide in third quarter

    Stelux Holdings International has reported a 12.7 per cent slide in sales in the three months to December 31.

    A large component of the decline was the exchange rate – on a fiscally neutral basis, sales fell a more modest 8.8 per cent, the company has reported to the Hong Kong stock exchange.

    Turnover totalled HK$850.8 million for the quarter, down from the $974.6 million of the same period last year.

    “Our Mainland Optical 88 operations saw turnover growth of around 8 per cent in local currency terms, and the growth momentum from our eGG business in Greater China was sustained, but other business units within the group generally saw turnover decline,” the company reported.

    The main contributor of the decline would appear to be the City Chain jewellery and watch operation which has been hit by changing tourist spending patterns in Hong Kong and weak consumer sentiment in Malaysia, Singapore and Thailand. Stelux did not release figures for that subsidiary.

    The unaudited consolidated turnover of the Group for the nine months to December 31 was HK$2.637 billion, a decrease of 11.4 per cent, or 8 per cent on a foreign exchange neutral basis.

    “The group maintains stable liquidity with reduction of inventory by around 7 per cent and 15 per cent against that as at the end of September 2015 and March 2015 respectively,” the statement concluded.

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  • Optical 88 struggles

    Optical 88 struggles

    Eyewear chain Optical 88 has suffered a 10.5 per cent slump in sales in the first half, with profit down 53.2 per cent.

    According to the trading announcement of its parent company Stelux International, sales reached HK$579.1 million and EBIT $18.0 million.

    The company says exchange rate fluctuations and the subdued Hong Kong and Macau markets contributed to the downturn, although the business remains profitable.

    In Hong Kong and Macau turnover decreased by 8.9 per cent and profit by 32.6 per cent, despite efforts in cutting operating costs (other than shop rentals) by around 7.4 per cent. “The turnover performance was impacted by the softened demand from local customers and tourists but gross profit margin remained healthy and stable,” Stelux said in its filing.

    In Mainland China, sales declined by a modest 5.3 per cent. The company says it is building on Optical 88’s professional and healthcare positioning, and will continue to expand the store network in Mainland China in the second half of this year. It aims to accelerate network expansion in the Southern and Southwest regions to further strengthen its market share, paving the way for further expansion into other parts of China.

    Optical 88’s turnover in Southeast Asia dropped by 17.8 per cent (or by 7.1 per cent on a constant currency basis), and a loss of $11.5 million was recorded.

    The introduction of GST in Malaysia in April caused turnover to slip in the first quarter, but the company made up the lost ground in the second quarter.

    Store consolidation and productivity enhancement measures in Singapore paid off this year, with the loss narrowing by 10.7 per cent to HK$7.5 million through reduced operating costs.

    The Thai operations are still profitable, but recorded a drop in turnover by 19.1 per cent caused by the significant decline in consumer confidence and purchasing power in Thailand.

    “Severe competition driven by widespread sales promotions in the market has also led to narrowed margin. The tough market is expected to continue in Thailand, and we will… close non performing shops and continue with our cost control measures, which have reduced our operating costs by 15.7 per cent in the first half,” said Stelux in its filing.

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  • Stelux warns of looming loss

    Stelux warns of looming loss

    Hong Kong headquartered watch retailer Stelux has warned shareholders it expects to post a loss in the first half year.

    Stelux owns the City Chain network of watch stores along with eyewear brands eGG and Optical 88.

    In the first quarter of this year the company reported a 7.1 per cent decline in sales. But despite a decrease in turnover due to a decline in tourist spending in Hong Kong and Macau, the company achieved an 85.8 per cent increase in sales of its fashion eyewear chain eGG in the China Mainland, a 23.4 per cent increase in City Chain sales there, and a more modest 0.2 per cent gain in its Optical 88 chain.

    Fast forward to last Friday, however, and it warned interest charges, exchange rate losses and weakening Hong Kong and Macau sales will see it record a loss for the full six months.

    It reported “a decrease in turnover and gross profit caused by weak retail sentiment… particularly in Hong Kong, Macau and Southeast Asia (with moderate turnover growth recorded in Mainland China).”

    In the six months to September 30 last year it posted a profit of more than HK$105 million (about US$13.5 million).

    “Despite the anticipated loss, the group is expected to report a positive operating profit, an improved gearing ratio (with a reduction in bank borrowings of approximately HK$130 million) and stable liquidity in the reporting period,” the statement concluded.

  • Stelux China sales soar

    Stelux China sales soar

    Listed Hong Kong eyewear and watch retailer Stelux Holdings has reported a 7.1 per cent decline in sales in the first three months of the 2015 financial year, compared to the same period last year.

    However Stelux China proved a standout in the trading results for the three months to June 30.

    The company says despite a decrease in turnover due to a decline in tourist spending in Hong Kong and Macau, the company achieved an 85.8 per cent increase in sales of its fashion eyewear chain eGG in the China Mainland, a 23.4 per cent increase in City Chain sales there, and a more modest 0.2 per cent gain in its Optical 88 chain.

    The company says its total sales reached HK$860.7 million in the period, compared with $926.4 million in the same quarter of 2014.

    Turnover in Southeast Asia – where it has stores in Singapore, Thailand and Malaysia – decreased by 16.9 per cent.

    “Excluding currency effects, the turnover would have decreased by nine per cent due to weak retail sentiment in Thailand and Malaysia,” the company said in a stock exchange filing on Monday.

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  • Optical 88 reports strong Hong Kong sales

    Optical 88 reports strong Hong Kong sales

    Eyewear chain Optical 88 is narrowing its Mainland China losses as its sales improve.

    A subsidiary of Hong Kong-listed Stelux Holdings, Optical 88 has 227 stores in Hong Kong, Macau, Mainland China, Singapore, Malaysia and Thailand.

    Group sales rose just one per cent in the year to March 31, and its store network shrank by seven.

    Trading was mixed across the markets, with China and Malaysia standouts.

    China sales rose 4.7 per cent and the loss narrowed by 10 per cent to HK$27.5 million.

    “In line with our Greater China strategy, resources have been strengthened to accelerate shop opening in Southern and Southwestern China as we have relocated out from expensive cities, like Shanghai,” parent Stelux said in a stock exchange filing.

    “In addition, as we increasingly cater for the ageing demography and children, sales in progressive and functional lenses have improved whilst myopia control lenses have also been introduced.”

    In its home market of Hong Kong and Macau, the soft economy in Macau together with the accelerated slowdown in Hong Kong in the second half after a strong first six months, saw sales rise 3.9 per cent for the full year to $835.6 million.

    Profit rose 19.5 per cent to HK$95.4 million and gross margin improved to 64.2 per cent.

    “Though less affected by the decline in Mainland tourist spending, a cautious approach has nonetheless been adopted to review our store portfolio in key tourist locations.”

    Optical 88 recorded a loss for its Southeast Asian stores, but there were mixed results by market.

    Overall, Optical 88 lost $6.7 million in the three markets but on an exchange neutral basis, the loss was reduced to $1.4 million. Operating costs declined 2.2 per cent, with shop rentals falling 3.8 per cent.

    “In the second half of the year, a Hong Kong team was parachuted in to strengthen operational management and to improve operational efficiencies in all three regions. Initiatives were introduced to increase store productivity, improve gross margin and tighten procurement control. We will continue to see progressive improvements as a result of the above measures in the next year,” Stelux said.

    Singapore stores reported improved sales per shop as the brand focused on strengthening its customer base. Malaysian reported earnings of around $1.8 million, but excluding an

    exchange loss the profit would equate to $4.8 million.

    “In the medium term, we will be opening new stores to increase market coverage and to grow business scale.”

    The profit from Thai stores fell from $13.8 million to $8.6 million.

    “Given the poor economy and the unstable political situation, a cautious approach will be adopted towards shop leasing,” said Stalex.

    Optical 88’s total profit for the year rose 12.8 per cent to HK$61.2 million due to Hong Kong and Mainland China operations.

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