Sasa International’s sales plummet in Hong Kong

Sasa International‘s first-quarter sales declined amid headwinds in its core markets of Hong Kong and Macau.

The group’s sales fell 9.8 per cent to HK$944.6 million (US$121 million) with offline sales amounting to HK$743.4 million and online sales totalling HK$201.2 million.

In Hong Kong and Macau Sa Sa’s sales plunged 20.4 per cent to HK$684.8 million, attributed to the decline to the sluggish macro environment, continued outbound travel, and a higher comparison base in the year-ago period when borders reopened.

Meanwhile, Mainland China sales surged 66.5 per cent to HK$163.5 million and Southeast Asia sales grew 8.4 per cent to HK$94.1 million.

The company said that its re-entry to Singapore – where it has opened four stores, taking the total to five by May – contributed to its growth in Southeast Asia.

Sales in other markets rose 0.2 per cent to HK$2.2 million.

The company said it is confident that market conditions and performance will improve gradually in Hong Kong and Macau.

It also said it is reviewing its offline operations in Mainland China to raise productivity. The group intends to focus on exclusive brands to build brand loyalty and avoid direct price competition on the mainland.