Lifestyle International announces 2021 interim results
What: Sogo Hong Kong announces results for the six months ended 30 June.
Why it is important: The department store returns to profit with solid strategy and enhanced business capabilities.
Hong Kong retail market returned to growth in the first half of 2021 but the recovery has been limited as inbound tourism remained frozen. For the period under review, and comparing to 2020, the Group’s total gross sales proceeds increased by 8% and turnover rose by 12.8% as a result of improvement in customer foot traffic at the stores of the Group amid the gradual easing of social distancing rules with pandemic receding in the city.
The Group recorded a net profit attributable to owners of the Company of HKD 220.0 million, whereas it was a loss of HKD 226.9 million in the corresponding period last year. The profit was mainly attributable to growth in retail sales as a result of improvement in customer foot traffic.
In view of the prevailing challenging operating environment and persistent uncertainties over the pace of market recovery, the board of directors has resolved not to recommend the payment of an interim dividend.
With gradual easing of containment measures and the Group’s effective theme-based promotions introduced to attract footfall and encourage repeat purchase, sales at the flagship SOGO Causeway Bay increased 8.2% from a year earlier whereas SOGO Tsim Sha Tsui sales grew 6.8%. Both stores saw a rebound in average ticket size.
With the exception of certain delays that were encountered last year, construction works of the Group’s Kai Tak Project during the period have been progressing smoothly as scheduled. The Kai Tak retail complex is expected to be in business in 2023.