China electrical appliances retailer Gome expects better profit
Gome Electrical Appliances Holdings Ltd said it expected better full year numbers and would open more outlets next year, as the electronics retailer continued to benefit from its store restructuring plan and various other cost control measures, China Daily reported.
Chen Xiao, president of Gome, said revenue during the third quarter of the year rose 2.85 percent to 10.97 billion yuan (1.61 billion U.S. dollars) compared with 10.66 billion yuan in the previous quarter. Net profit for the period was 385 million yuan.
The company said revenue for the nine months ending Sept. 30 rose 13.64 percent to 31.43 billion yuan over the same period last year. Net profit, however, fell in the nine months by 39 percent to 965 million yuan from a year ago.
The company has improved its performance with better management and outlet optimization and needs to revamp the products at its outlets, said Lu Renbo, analyst of the Research Institute of Market Economy of the State Council.
Gome was founded by Huang Guangyu in Beijing in 1987 and was listed on the Hong Kong Stock Exchange in 2004.
