Le Saunda sales plunge with 30 per cent
In this article (5)
Le Saunda sales plunged 30 per cent in the fourth quarter as the embattled shoe retailer struggles to attract customers.
According to a stock exchange filing, sales at Le Saunda’s self-owned stores fell by 29.9 per cent in the quarter, with same-store sales declining 17.4 per cent.
That followed a cull of 161 stores over 12 months across Mainland China, Hong Kong and Macau.
Sales by the group’s e-commerce business fell by 4.1 per cent, compared with the same period last year.
Le Saunda has 526 stores remaining across its three markets, with 464 of them self-owned and 62 franchised on the mainland.
The company said it expects the group to record a net loss attributable to shareholders for the 2018-19 financial year, primarily attributable to the decrease in sales, and a declining gross profit margin. Le Saunda did not give an estimate for the loss.
Questions & Answers
Q.What is the primary reason for Le Saunda’s expected net loss this financial year?
What is the primary reason for Le Saunda’s expected net loss this financial year?
The company anticipates a net loss primarily due to the significant decrease in sales across its operations. A declining gross profit margin also contributed to this negative financial outlook for the 2018-19 financial year.
Q.How many stores did Le Saunda close over the last year?
How many stores did Le Saunda close over the last year?
Le Saunda closed a total of 161 stores over a twelve-month period. These closures occurred across its markets in Mainland China, Hong Kong, and Macau, impacting its physical retail presence.
Q.What proportion of Le Saunda's remaining stores are self-owned?
What proportion of Le Saunda's remaining stores are self-owned?
Out of the 526 stores Le Saunda currently operates, 464 are self-owned. The remaining 62 stores are franchised, all of which are located on the mainland.
Q.Did Le Saunda's e-commerce sales also decline?
Did Le Saunda's e-commerce sales also decline?
Yes, sales from the group’s e-commerce business experienced a decline of 4.1 per cent. This figure compares to the same period in the previous year, indicating a downturn in online revenue as well.
Reader pulse
Will Le Saunda rebound?
16,084 votes so far