TSL Accelerates China Expansion

RAPAPORT... Tse Sui Luen (TSL) will further broaden its Chinese networkover the next few years, as it continues to see solid growth in the country. The Hong Kong-based jewelry retailer will open an additional 100 stores inmainland China in the coming two years, following the launch of 55 new locationsduring the past year, it said Wednesday. The move comes after sales in thecountry accounted for 37% of the group's turnover in the past year. Total revenue slipped 1.7% to HKD 4.06 billion ($519.5million) in the 12 months ending March 31. Profit for the period grew 9% to HKD54.2 million ($6.9 million). However, last year the jeweler adjusted its fiscal year to match the traditional retail cycle. As a result, theyear ending March 31, 2018, covered a 13-month period, instead of the 12 monthsthis year. While sales in the first half of the year remained strong,the US-China trade war hit consumer spending in the second half, as localcurrency weakened against the US dollar. "The dispute between the United States and China...hasadversely affected the market sentiment and consumer confidence and resulted inthe depreciation in the [yuan], all leading to a slowdown in the global economyand in the local retail sales performance...particularly...in the second half ofthe year." Sales in mainland China fell 1.3% to HKD 2.51 billion ($321million) during the 12 months, compared to HKD 2.54 billion ($3.25 million) forthe 13-month period a year ago. The group had 205 self-operated stores and 230franchised stores in China at the end of March. Revenue in Hong Kong and Macaudropped 2.6% to HKD 1.49 billion ($190.7 million), as the general downwardtrend of retail in Hong Kong continued. Sales from other countries decreased1.4% to HKD 61.2 million ($7.8 million) for the year. Image: A TSL store in Hong Kong. (Naoniaum21)