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.
Read more: Le Saunda loses anniversary shine