Parkson Retail China has been able to parlay a string of modest first-quarter increases into an 181.7 per cent boost in operating profit.
Same-store sales for the quarter, to the end of March, grew by 1.7 per cent; total operating revenues rose 2.9 per cent to RMB1.2 billion (US$187.7 million) while merchandise gross margin increased by 0.2 points to 15.7 per cent.
Its operating profit jumped to RMB87.9 million, despite a 1.9 per cent drop in gross sales proceeds to RMB4.3 billion. The group attributes the decline mainly to the closure of six
underperforming stores last year as part of its continuing effort to optimise.
However, the 1.7 per cent rebound in same-store sales was encouraging following the 2.2 per cent drop in the same period 12 months earlier.
Strong direct sales in the cosmetics and accessories category saw total operating revenues jump by 2.9 per cent to RMB1.2 billion.
At the end of March, the group ran and managed a diverse range of retail formats including 44 department stores, a shopping mall, two Parkson Newcore Citymalls, supermarkets, fashion and F&B outlets in more than 30 major cities across China.