Le Saunda sales feel the pinch
With markets sluggish in Mainland China, Hong Kong and Macau, footwear group Le Saunda sales and profit all tumbled for its fiscal year to February 28.
Total revenue fell 15.8 per cent year-on-year to RMB1.3655 billion (US$198.8 million), gross profit dropped by 15.1 per cent to RMB908 million, and profit attributable to the owners of the company fell by 38.6 per cent to RMB75 million.
The underlying profit attributable to owners, which reflects the performance of the group’s core
footwear business, decreased by 37 per cent to RMB81.3 million.
There was an 0.5-point increase in overall gross profit margin, edging it up to 66.5 per cent.
During the year, the group’s retail markets remained sluggish with no signs of imminent recovery. Total sales and same-store sales both fell.
Le Saunda says Mainland China remains its key retail market. At the end of the fiscal year it had 796 stores in China, Hong Kong and Macau, 100 fewer than 12 months earlier. There were 73 fewer self-owned stores, while 27 franchised stores closed.
The company’s network at the end of February included 563 Le Saunda stores and 52 Le Saunda Men stores, down 96 and 13 stores respectively. Meanwhile, six high-end fashion Linea Rosa stores were opened, taking their total to 74. Three CNE stores were closed, leaving 22.