Shirble Department Store issues profit warning
Shirble Department Store Holdings (China) has issued a profit warning indicating an expected drop of 20 to 25 per cent in net profit attributable to the owners of the company for the year to the end of December.
The company’s board lists four main reasons for the profit dip…
- Unrealised exchange loss of about RMB21.5 million (US$3.3 million) because of the change of a certain bank deposit of the group from RMB into US dollars.
- A decrease in recognition of deferred income in respect of unused prepaid gift cards issued by the group of about RMB4.8 million.
- Slight decreases in sales revenue generated from certain department stores of the
group in China because of a combination of factors, such as an increase of online sales and unexpected changes in consumer preferences.
- A decrease in net finance income as a result of a RMB23.7 million cash deposit used to acquire properties in Changsha and Shenzhen.
The board is finalising the unaudited consolidated annual results of the group for the year, and believes the unrealised exchange loss will not impact the core business and cash position of the group.
The results announcement of the company for the year to the end of December will be published by the end of next month.