|
RAPAPORT... Chow Sang Sang reported that group revenue plummeted 34 percent year on year to $1.2 billion (HKD 9.33 billion) for the first half of the year that ended on June 30. Jewelry retail sales fell 25 percent to $1.1 billion (HKD 8.21 billion), but the group's "other" areas of business experienced a 65 percent drop in revenue at $144.3 million (HKD 1.12 billion). Profit attributable to shareholders fell 15 percent to $67.1 million (HKD 519.8 million). Inventory was basically flat at $889 million (HKD 6.9 billion). The company stated that tourism to Hong Kong in the first half of the year had increased compared with 2013; however, this trend did not translate into higher retail sales for jewelry and watches in the region. Demand for gold products was greatly reduced, political disputes in Hong Kong and an anti-corruption drive coupled with tight credit in Mainland China contributed to sales weakness in the first six months of 2014. Chow Sang Sang stated that jewelry retail comparable-store sales fell 32 percent in Hong Kong and Macau, primarily due to a dramatic drop in gold sales. Same-store sales in Mainland China fell 20 percent, even though jewelry sales were strong, according to management. Online sales surged 40 percent. The company anticipates modest growth in sales for the second half of 2014 and it plans to open 32 new stores, including a flagship location in Shanghai.
|