‘Hong Kong-based jeweler Chow Sang Sang will open around 60 new stores in mainland China by the end of the year following strong sales in the country in the first half.
“There is room for growth by means of product, services and brand differentiation,” the company said Wednesday.
Improvements in China for the six months ending June 30 helped offset lower sales in the Hong Kong market. Total sales decreased 0.2% to HKD 9.54 billion ($1.22 billion). Revenue from the jewelry-retail segment grew 1% to HKD 8.77 billion ($1.12 billion). The group’s other revenue comes from businesses such as wholesaling and real estate. Profit rose 2% to HKD 615 million ($78.4 million).
Compared with the previous quarter, sales in China grew 4% to HKD 5.16 billion ($657.4 million), while those in Hong Kong fell 2%.
Demonstrations in Hong Kong in June against a proposed extradition bill by the government dampened consumer sentiment, the jeweler explained. Same-store sales — at branches open for at least a year — in the municipality dropped by a double-digit figure for that month, the company added, noting that sales were likely to be slow for the remainder of the year.
“Well into the third quarter, there is still no end in sight for the civil unrest in Hong Kong,” Chow Sang Sang continued. “Much has been reported on the dearth of tourists and how the retail sector has suffered. It will take hard work to match the high base achieved in the second half of 2018.” ‘
Source – www.diamonds.net Rapaport