Sa Sa International expects bigger loss in FY2021

Amidst this, the group has been looking to further develop its online business.

Sa Sa International is expecting to record a loss of $38.62-43.77m (HK$300-340m) from its continuing operations for the year ended March, compared to a $26.39m (HK$205m) loss in the previous year, the company announced in a profit warning.

After taking into account the impairment losses on right-of-use assets and property, plant and equipment of $6.44-10.30m (HK$50-80m), the Group expects to record a loss of around $45.06-54.07m (HK$350-420m) for the financial year.

The company said that it has implemented short-term cost reduction measures and long-term cost structure optimization plans, with a focus on rationalizing the store network to restore profitability as soon as possible.

The group has also been investinging the development of online business to accelerate the integration of online and offline operations and capture the growing online consumer base, which would build a solid foundation for the group’s long-term growth in the future.