Le Saunda CEO resigns and on the search
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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.
Questions & Answers
Q.What reason has been given for CEO Cheng Wang's departure from Le Saunda?
What reason has been given for CEO Cheng Wang's departure from Le Saunda?
According to a stock exchange filing, Cheng Wang is leaving the company to pursue "his other personal affairs". He will also vacate his seat on the shoe retailer's board on the same date as his resignation, October 16.
Q.How has Le Saunda managed to achieve a profit after last year's loss?
How has Le Saunda managed to achieve a profit after last year's loss?
The company's turnaround is attributed to improved sales in Mainland China, reduced administrative expenses from regional office restructuring, and the closure of underperforming stores. This resulted in a profit of RMB 2 million compared to a RMB 9.585 million loss previously.
Q.What is the current total number of Le Saunda stores following recent closures?
What is the current total number of Le Saunda stores following recent closures?
Le Saunda now operates 465 outlets across Mainland China, Hong Kong, and Macau. The company has closed 156 outlets between the end of the second quarter last year and August 31 this year, streamlining its store network.
Q.How did Le Saunda's different sales channels perform in the second quarter?
How did Le Saunda's different sales channels perform in the second quarter?
Sales in self-owned stores were down 6.5 percent, although same-store sales increased by 17.5 percent. However, online sales experienced a significant plunge of 28.4 percent, indicating varied performance across sales channels.