SKL (00974) issues profit warning with the expected increase in net loss amount for the year 2024 to be between 62 million and 72 million yuan.

SKL (00974) announced that it expects the Group to incur a net loss ranging from RMB 62 million to RMB 72 million for the year ending December 31, 2024 (2024 fiscal year), compared to a net loss of approximately RMB 26.68 million for the year ending December 31, 2023 (2023 fiscal year). The announcement stated that the increase in net loss for the 2024 fiscal year was mainly due to (i) a significant decrease in retail sales revenue and lower gross profit margins resulting in a substantial reduction in sales gross profit; (ii) impairment provisions made for company assets due to the impact of the operating environment; (iii) a decrease in revenue from retail store supplier channels; and (iv) the impact of the above factors outweighing the decrease in operating expenses, resulting in an overall increase in net loss.