Hit by the deteriorating regional economy, Sa Sa International Holdings has warned that its interim results for the six months to September 30 would be substantially below market expectations.
The result is expected to be announced in late December.
In a statement, the company announced operating profits had been affected severely by the decrease in store sales due to the difficult economic climate in the region.
The company said profit had also been affected by rising costs and a severe downturn in the retail and tourism industries.
It has already taken steps to improve its future results by introducing a vigorous cost-control programme including a reduction in the sales force and salary cuts.
Sa Sa International would also conduct a strategic review of its expansion plan, the statement said.