Hong Kong: Chow Sang Sang saw a sharp drop in sales last year, the Hong Kong-based jeweller reported citing weak consumer sentiment and a decline in tourist levels.
Group revenue slid 16% to $2.07 billion (HKD 16.09 billion) in 2016, according to a company statement. Sales in Hong Kong and Macau fell 23% to $1.11 billion (HKD 8.65 billion), with mainland China revenue slipping 4.6% to $944.9 million (HKD 7.34 billion). Profit slumped 34% to $95.5 million (HKD 742.2 million).
A sluggish economy resulted in lower consumption in regions where the retailer is active, especially Hong Kong, the company explained. The strong Hong Kong dollar, which is pegged to its U.S. counterpart, made the municipality a less attractive tourist destination. This had a notable impact on visits from mainland China, which dropped 6.7 percent, Chow Sang Sang pointed out.
Meanwhile, despite an increase of more than 20% in the price of gold during the year – a consequence of global economic and political uncertainty – there was no corresponding rise in demand for gold jewellery, the retailer said. The company’s sales in this category slid 34% by volume in Hong Kong and Macau as a result.
