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Chow Tai Fook Profit Set to Slump
May 15, 2016 6:45 AM
By Rapaport News
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RAPAPORT... Chow Tai Fook warned profit is expected to plummet 40 to 50
percent in the fourth fiscal quarter because of weaker consumer sentiment in
Greater China.
Gross profit margin was negatively affected by the
unrealized hedging loss on gold loans versus a gain last year and a change in
the product mix to more gold sales. The profit slide would only be 20 to 30
percent if the hedging loss and the impact of Renminbi fluctuation were excluded,
the company pointed out.
Sales
declined 26 percent in the three months to March 31, the Hong Kong-based
jeweler said last month. During that period was the run-up to the Chinese New Year, when retail sales were 29
percent lower than a year ago.
The company issued
a similar profit warning in November ahead of first-half results which
showed a 43-percent
profit slump.
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Tags:
China, Chow Tai Fook, Greater China, Hong Kong, Jewelry, Rapaport News, results. guidance, sales
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