TSL Says Adverse Impact Of New US Govt. On China Added To Sales Drop

China jewellery retail major Tse Sui Luen Jewellery (TSL), which reported a drop in turnover and profits for the fiscal year ended February 28, 2017, attributed a part of the fall to slowing economic performance in mainland China “under the impact of the new government in the United States”.

TSL reported net profit for the year ended February 28, 2017, fell by 1.9 percent to HK$23.2 million (US$3 million) on turnover of HK$3.4 billion (US$436.6 million), which was 3.6 percent lower than the HK$3.53 billion (US$453.3 million) the previous year.

The company’s sales turnover in Hong Kong and Macau tumbled by 24.6 percent overall and same store sales growth also dropped by 23 percent.

The company said, “A continuing reduction in tourists visiting Hong Kong from mainland China, together with the ongoing instability of both the global and local economic and political environment created an unfavourable consumption sentiment for the group’s retail outlets during the year.”

The company also noted, “In addition, certain factors, such as the devaluation of the renminbi and the slowing economic performance in mainland China under the impact of the new government in the United States, were all inimical to tourist arrivals, consumer confidence and consumer purchasing power.”

https://www.gemkonnect.com/news/tsl-says-adverse-impact-new-us-govt-china-added-sales-drop