RAPAPORT... Singapore-based retailer SK Jewellery Group saw a heavy decline
in sales for the third quarter amid economic challenges in key markets and the
closure of its gold-trading platform.
Revenue fell 46% to SGD 32.6 million ($24 million), while
net profit slumped 58% to SGD 359,000
($263,889), the company said in a statement earlier this month.
“Continuing tensions between Japan and Korea, Brexit, and
the Sino-US trade war have contributed toward a pessimistic consumer outlook,”
according to the company, which operates more than 60 stores across Singapore
and Malaysia.
The jeweler recently launched two flagship stores in the
Chinese cities of Chongqing and Chengdu, and plans to expand further into China
through franchise stores. However, in May, weak demand prompted it to shut its SK
Bullion subsidiary, a service for consumers to buy and sell gold and precious
metals. The move cost the group SGD 29.3 million ($21.6 million) in revenue
during the three months ending September 30.
SK, which has a grading partnership with De Beers, also
entered the lab-grown diamond market in October with the launch of synthetics
line Star Carat, including at its Love & Co. bridal brand.
Image: Items from SK Jewellery’s Star Carat line of lab-grown diamonds. (SK Jewellery)
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