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Tag: Stelux Holdings

  • 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 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.