Hong Kong’s retail sector is expected to reach a trough this year, although a rebound is unlikely, Lifestyle International Holdings Ltd. (01212.HK) chairman Thomas Lau Luen-hung said.
The company a net profit of HK$1.91 billion last year, down 10.7 percent from 2014, the Hong Kong Economic Journal reported.
The fall in earnings fall was attributed to a decrease in investment income and a HK$20 million provision for the closure of its Shenyang business.
Same-store sales at its flagship store in Causeway Bay dropped 4.5 percent in 2015, and worsened to a double-digit decline in the first two months of this year.
Nonetheless, Lau said Hong Kong remains attractive to mainland tourists and the outlook of the city’s retail sector will be positive in the long run.
The company will discuss with vendors to offer concessions to consumers at its shopping malls similar to the promotions last year, in a bid to boost sales.
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