Sa Sa’s revenue jumps 37% on surging sales in Hong Kong, Macao

Cosmetics retailer Sa Sa International Holdings Ltd. (0178.HK) announced on Wednesday that its revenue rose 37.2% year-on-year to HK$1.41 billion ($180 million) in its second fiscal quarter through September. Its offline sales in Hong Kong and Macao rose 52% to HK$1.12 billion, as same-store sales jumped 46.9%.

The company said popular beauty products and promotional campaigns attracted visitors from Mainland China, boosting transaction numbers, average transaction value and the number of items purchased per transaction. Offline sales in Southeast Asia also rose 11.4%.

The company’s online sales to consumers increased 22.5% to HK$154 million for the quarter. At the same time, it deliberately reduced lower-margin orders to other businesses to reserve inventory for its higher-margin retail business, resulting in a 5% decline in overall online sales.

During the National Day holiday from Oct. 1 to Oct. 7, offline sales in Hong Kong and Macao rose more than 60% year-on-year, while same-store sales increased more than 50%. The company said promotions and new concept stores in Hong Kong’s Mong Kok and Tsim Sha Tsui shopping districts boosted customer traffic and sales.

Sa Sa’s shares opened higher on Thursday and were up 8.8% at HK$1.230 at the midday trading break. The stock is up 120% this year.

By Lee Shih Ta

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