Parkson Group (3368.HK) announced that net profit for the third quarter of FY13 (July-September) fell by 77.5% to RMB 33.48 million. According to Citi, Parkson's same-store sales in the third quarter fell 4.2%, which was significantly worse than the first half of the year (down 0.7%). Operating profit/gross margin each fell 3.3/3.2 percentage points to 1.7%/0.9%, indicating that Parkson's management blamed factors such as the economic slowdown in the mainland, government corruption, the impact of some city businesses on subway projects, and flagship store renovations. Citibank Parkson's operating profit margin continues to face pressure, reaffirming its selling rating.