HONG KONG — Mass beauty retailer Sasa International said Monday its first-half net profit is expected to decline between 35 to 45 percent on declining sales and margins at its physical stores and online operations.
The company, which sells low-priced cosmetics across greater China, Singapore and Malaysia from brands like Maybelline and L’Oréal, said turnover for the quarter ended September fell 2.3 percent year on year to 1.9 billion Hong Kong dollars or about $245 million at current exchange rates.
The total number of Hong Kong and Macau transactions in the second quarter, where nearly half of its store network is, rose 3.9 percent but couldn’t make up for the falling average sales per transaction which dropped 5.8 percent to 326 Hong Kong dollars or about $42 at current exchange rates.
The retailer also shared data from the Golden Week holiday. Between Oct. 1 and 7, its Hong Kong and Macau stores recorded sales growth of 13.8 percent, although it was based off of increased traffic. The number of transactions of mainland Chinese customers increased by 19.1 percent, while average sales per transaction decreased by 4.7 percent.
Sasa is due to release its first-half numbers by Nov. 30.