Sina
Edition: CHINA ASIA USA EUROPE AFRICA
Home > HK
Friday, July 15, 2016, 19:00

Business still jittery for HK-listed jewelry retailers

By Oswald Chan

HONG KONG - Hong Kong-listed retail jewelers remain jittery as weak consumer sentiment in the city is taking a toll on the retailers’ businesses.

Chow Sang Sang Holdings International Ltd issued a profit warning on Friday afternoon, saying  its amount of  interim profit attributable to shareholders for the six months ended June are expected to decrease by approximately 50 to 60 percent .

"The reasons for the decrease are a decline in turnover due to weakened consumer demand in the mainland and Hong Kong, gold hedging activities for the period resulting in unrealized losses, and a one-off gain on the disposal of part of the company’s long-term holdings of shares in Hong Kong Exchanges and Clearing Ltd of HK$246 million,”

Chow Sang Sang Holdings International Chairman Vincent Chow Wing-sang said in the company statement.

Meanwhile another retailer, Chow Tai Fook Jeweler Group Ltd, said its same store sales growth (SSSG) in Hong Kong and Macao plunged an annual 20 percent in the first quarter of the 2016/17 financial year (April to June).

The retailer on Friday afternoon posted its unaudited key operational data on the Hong Kong Exchanges and Clearing website.

Besides the SSSG slump, the same store sales volume growth in Hong Kong and Macao also tumbled 24 percent in the same period.

On the Chinese mainland, the retailer’s SSSG decreased 17 percent while same store sales volume growth also dived 20 percent from a year ago.

"Sales performance of Hong Kong and Macao remained weak amid stagnant consumer sentiment and a decline in mainland tourist visits,” Chow Tai Fook Jeweler Group Chairman Henry Cheng Kar-shun said in the company statement.

The company closed 4 point of sales (POS) in the period, bringing the total number of POS to 2,315 as at June 2016.

Chow Tai Fook’s share price dipped 2.5 percent to close at HK$5.89 apiece on Friday while Chow Sang Sang edged 0.8 percent to HK$15.74 apiece on the same day.

Latest News