HONG KONG, May 26 (Reuters) - GOME Electrical Appliances Holding Ltd on Thursday said its first-quarter net profit fell 54.3 percent as the retail chain operator revamped its stores and sales channel.
The company, which has a market value of $2.6 billion, said its net profit plunged to 134 million yuan ($20.4 million) for the first quarter of 2016, from 293 million yuan a year ago.
GOME, a smaller rival of Suning Commerce Group, had expected its first-quarter profit to fall 50-55 pct on year with offline store sales declining as it implements its “strategic transformation plan”, while the results could improve on completion of this transformation.
Revenue rose 5.2 percent to 15.2 billion yuan as sales of its online e-commerce business grew.
The company had said earlier this year that it would revamp its offline stores to inroduce new shopping experiences to customers in a bid to boost traffic while integrating online and offline channels as well.
GOME shares have dropped 32 percent so far this year, lagging a 6.9 percent fall in the benchmark index.
$1 = 6.5589 Chinese yuan renminbi Reporting by Donny Kwok; Editing by Sherry Jacob-Phillips