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Hong Kong’s Chow Sang Sang Warns on Profit
Jan 22, 2017 5:17 AM
By Rapaport News
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RAPAPORT... Chow Sang Sang said full-year profit for 2016 is expected to
slump between 30 and 40 percent as a fall in demand from mainland China and
Hong Kong hit sales.
The plunge is not as bad as it looks because a one-off gain from
a corporate deal had pushed up the jeweler’s profit in 2015, it said in a
preliminary update. Profit had increased 4 percent to $145.7 million (HKD 1.13
billion) in 2015 even as group turnover declined 1 percent to $2.46 billion.
The expected drop in profit will extend a downward trend that
Chow Sang Sang saw in the first six months of the year. In that period, the
Hong Kong-based retailer’s first-half revenue slid 16 percent amid weaker
consumer sentiment and a drop in tourist arrivals in the municipality, while
profit plummeted 50 percent, weighed down too by the effect of the one-off gain a year
earlier. Chow Sang Sang is expected to release final results for the full
calendar year in March.
The retailer’s latest profit warning is in contrast with relatively
positive trading updates from Hong Kong peers Chow Tai Fook and Luk Fook. Both firms
reported sales rose in mainland China during the October-to-November period,
but they too experienced a decline in revenue from Hong Kong.
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Tags:
China, Chow Sang Sang, Chow Tai Fook, Hong Kong, Luk Fook, mainland china, Rapaport News, retail
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