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China Growth Drives Chow Sang Sang Sales

Aug 30, 2017 3:11 AM   By Rapaport News
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Hong Kong-based jeweler Chow Sang Sang saw a 3% rise in sales in the first half, powered by stronger demand in China and a pickup in mainland tourism to the territory.

Sales came to $1.02 billion (HKD 8.01 billion) for the six months ending June 30, and profit rose 8% year on year to $50.1 million (HKD 392.1 million), the company said Tuesday.

Revenue in mainland China rose 8% year on year to $516.2 million (HKD 4.04 billion) as the nation’s gross domestic product grew by an unexpectedly steep 6.9% during the period, the company said. In the local Chinese currency, revenue increased 13%, with same-store sales up 8%.

Sales in Hong Kong and Macau slipped 5%, 4% of which the jeweler attributed to shop closures. Same-store sales there fell 3%, indicating the downward trend was bottoming out after a 26% plunge a year ago, the retailer reported.

The number of tourists visiting Hong Kong from mainland China went up 2.3% in the first half, according to data from the Hong Kong Tourist Board. A slide in visitor numbers in the past two years has weighed on jewelry sales in Hong Kong.

During the six-month period, Chow Sang Sang said, “both the property market and stock market were showing stronger momentum, which was favorable to consumer sentiment. The slippage in arrival of mainland tourists had largely halted, despite the renminbi having been soft against the Hong Kong dollar.”

However, sales of gem-set jewelry were still on the decline, the company added.

Image: TungCheung/Shutterstock.com
Tags: China, Chow Sang Sang, Hong Kong, Jewelry, Rapaport News, retail
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