Stelux Holdings warns of annual loss
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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.
Questions & Answers
Q.What is Stelux Holdings' main business, and where is it listed?
What is Stelux Holdings' main business, and where is it listed?
Stelux Holdings International is a Hong Kong-listed retail company that operates eyewear chains like Optical 88 and Egg, as well as City Chain jewellers. Its business focuses on fashion retail across these brands.
Q.What steps has Stelux Holdings taken to mitigate its expected loss?
What steps has Stelux Holdings taken to mitigate its expected loss?
The company has taken measures to ease the loss, specifically by closing underperforming stores within its network. Also, Stelux Holdings has implemented a reduction of its overheads to improve its financial position.
Q.How did Stelux's financial performance look in the first half of the financial year?
How did Stelux's financial performance look in the first half of the financial year?
In the first half, Stelux's turnover decreased by 6.9 per cent to HK$1.3 billion, and its gross profit margin narrowed from 59.6 to 58.1 per cent. The first-half loss was down 15.2 per cent to $62 million.
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