HK cosmetics retailer Sa Sa books 1.1 pct fall in Q3 sales, cautious on Q4

HONG KONG, Jan 12 (Reuters) - Hong Kong skin care and cosmetics retailer Sa Sa International Holdings Ltd on Monday said sales at home and in neighbouring Macau fell 1.1 percent in October-December as Chinese tourists sought cheaper products. The announcement came just days after Chow Tai Fook Jewellery Group Ltd, the world's largest jewellery retailer, said sales in the quarter fell 10 percent, in the first data to reflect the impact of democracy protests in the city. Parts of Hong Kong were brought to a standstill for over two months from end of September by demonstrators demanding full democracy in the Chinese territory, leading to a drop in tourism and high-street spending. Sa Sa, known for face creams and moisturisers, recorded a drop in sales during October's "Golden Week" holiday, and saw same-store sales in its fiscal third quarter fall 2.7 percent. "Mainland Chinese tourists demand less high-priced products, resulting in a decrease in the average sales per transaction," Chairman Simon Kwok said in a filing to the Hong Kong Stock Exchange. A campaign by the government in Beijing against displays of extravagance by public officials and the "prevailing social environment" in Hong Kong also hit sales, Kwok said. "The Group is relatively cautious towards the outlook for sales in the fourth quarter," he said. Shares of Sa Sa fell 1.5 percent on Monday, lagging a 0.5 percent gain in the benchmark Hang Seng Index. (Reporting by Donny Kwok; Editing by Christopher Cushing)