RapNet
Login


Rapaport News

 

Retail

  
Rapaport Broadcast
Martin Rapaport’s Webinar on Estate Jewelry
October 30 2019

Advanced search
Latest Articles
Videos
Features
News
Mining
Rough Markets
Polished Markets
Manufacturing
Retail

Chow Tai Fook’s Profit Dives 46% in Fiscal 2016

Jun 8, 2016 2:25 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Chow Tai Fook reported profit tumbled 46 percent in the past fiscal year as fewer tourists visited Hong Kong and a downturn in Greater China reduced consumer spending.

Profit slumped to $383.6 million (HKD 2.98 billion) in the 12 months that ended March 31, the Hong Kong-based jewelry retailer said. Revenue slid 12 percent to $7.3 billion (HKD 56.59 billion). Jewelry sales in mainland China dropped 11 percent and in Hong Kong and Macau declined 15 percent.

The results follow a profit warning issued by the retailer last month.

Tourist arrivals from the mainland retreated 8.6 percent in Hong Kong and 3.7 percent in Macau during the fiscal year, the jeweler pointed out. Mainland China contributed more than 50 percent of group revenue during the year, a figure that has increased over the past three years. The jeweler said it is still “confident” about the long-term growth potential in the region.

The “persistently weak retail sentiment” and a “decline” in the number of tourists, particularly from the mainland due to a “strengthening” of the U.S. dollar, continued to affect operations, Chow Tai Fook said.

“The increasingly affluent and sophisticated Chinese consumers continue to look for more personalized products and shopping experience,” the company added.

The company, however, pointed out its core operating profit – a non-IFRS measure that Chow Tai Fook believes is a useful measure of its operational performance – fell 24.5 percent, a better outcome compared with net income.
Tags: China, Chow Tai Fook, Greater China, Hong Kong, Jewelry, jewelry retail, mainland china, Rapaport News, retail, retailers
Similar Articles
SignetSignet Raises Full-Year Outlook
Dec 05, 2019
Signet Jewelers’ shares jumped 6% in early trading Thursdayafter the retailer...
Holiday Season Gets Off to Solid Start
Secondhand Could Spur Jewelry Sales – Bain



Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
  
twitter twitter
About Rapaport
Advertise with us