Sa Sa Reports 24% Q1 Revenue Growth, Plans 10 New Hong Kong Stores

Sa Sa International Holdings Limited (stock code 00178) reported a 24% revenue increase for the first quarter of the current fiscal year as of the 21st of this month, with Hong Kong and Macau operations growing 30%, according to Chairman and CEO Kwok Siu Ming. The growth stems from stabilized northbound travel by Hong Kong residents and increased mainland tourist arrivals driven by major events in Hong Kong. Kwok attributed the revenue surge to higher transaction volumes and expressed optimism for the full fiscal year, announcing plans to open 10 new stores in Hong Kong and Macau during the current fiscal year.

Sa Sa Plans 10 New Stores in Tourist and Residential Zones

Kwok stated the company will accelerate store openings due to improved economic conditions and confidence in Hong Kong's retail outlook. Of the 10 planned stores, 5 to 6 will be located in tourist areas, while others will open in residential zones including Lok Ma Chau and Kai Tak. Some new stores will exceed 2,000 square feet, as Kwok believes larger stores attract more customers. Sa Sa currently operates 85 stores in Hong Kong and Macau. Company research indicates the Hong Kong and Macau market can support 100 stores, leaving room for further expansion.

Gross Margin Declines as Company Prioritizes Competitive Pricing

Gross margin for the period declined 1.3 percentage points to 38.2%. Kwok explained the company's strategy for the previous fiscal year focused on attracting foot traffic through competitively priced products to drive revenue growth, and the margin decline aligned with company expectations. On market competition, Kwok noted Sa Sa differentiates itself by focusing on beauty, skincare, and fragrance products rather than pharmacy-style offerings. The company continues adjusting its product mix by introducing more exclusive and proprietary brands to maintain competitiveness. Kwok stated he is not concerned about mainland customers shopping overseas, citing convenient transportation between mainland China and Hong Kong, Sa Sa's comprehensive product range, and pricing that is more attractive than some overseas markets for certain products.

FAQ

What revenue growth did Sa Sa report for the first quarter of the current fiscal year? Sa Sa reported a 24% revenue increase for the first quarter of the current fiscal year as of the 21st of this month, with Hong Kong and Macau operations growing 30%.

How many new stores does Sa Sa plan to open in Hong Kong and Macau this fiscal year? Sa Sa plans to open 10 new stores in Hong Kong and Macau during the current fiscal year, with 5 to 6 stores in tourist areas and the remainder in residential zones including Lok Ma Chau and Kai Tak.