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.