A TSL store in Gurney Plaza, Penang, Malaysia. (Shutterstock)
|RAPAPORT... Hong Kong-based jeweler Tse Sui Luen (TSL) expects to incur a net loss of at least HKD 40 million ($5.2 million) for the first fiscal half as the Covid-19 pandemic depressed the company’s sales.
The loss for the six months ending September 30 compares with a net profit of HKD 1.6 million ($206,454) in the same period last year, the retailer said last week.
“The implementation of social distancing and quarantine measures in many countries worldwide have dampened consumer sentiment and brought international tourism to a standstill, plunging the global economy into recession,” TSL explained. “The drastic drop in foot traffic has led to the sales slump [in] our retail stores, particularly those in Hong Kong and Macau, which are highly dependent on tourist spending and in-store customer traffic.”
The company has cut costs to weather the challenges, including “relentlessly” negotiating rental contracts and streamlining operations, it added. The group plans to release its full results for the fiscal half by the end of November.
Source: Rapaport 13-10-2020