SINGAPORE (Oct 28): Lifestyle products company OSIM International slides 10.5% to $1.445 Wednesday after reporting quarterly earnings that fell short of expectations.

OSIM said net profit was $6.2 million in the third quarter, down from $16 million a year ago.

CIMB downgrades the stock to reduce from add after the results.

“It was particularly disappointing after the prior quarter's rebound hinted at decent sales momentum,” CIMB says.

It notes that poor sales of massage chairs was to blame, while costs rose due to legal expenses.

“We think there is little hope of a turnaround near-term,” CIMB says.

“Store closures are foreboding.”