Showing posts with label Hong Kong show. Show all posts
Showing posts with label Hong Kong show. Show all posts

Monday, 2 December 2024

Surge in Gold Prices Hits Luk Fook Revenue

Luk Fook Jewellery store

Luk Fook reported a 27 per cent slump in its half-year revenue and the closure of 175 of its 3,500-plus retail jewelry stores amid a surge in gold prices and weak consumer demand.

Earnings for the six months to 30 September were down to $700m. The Hong Kong-based jewelry chain blamed: “various challenges including macroeconomic uncertainties, further rising gold prices and cautious consumer sentiment, coupled with a high base effect”.

Luk Fook said the sharp rise in gold prices – an increase of 23 per cent during the six months – affected consumer sentiment, resulting in a 24 per cent drop in the sales of gold and platinum products. Overall same stores sales were down 34 per cent.

CEO Wong Wai Sheung said: “Although the spike in gold prices may affect sales performance, an increase in profit margin will help mitigate the impact of the decline in sales.

“Sales of the gold products are expected to resume to the normal levels after consumers adapt to the high gold prices.

Gross profits for the six months were down 14 per cent to $228m, net profit fell 56 per cent to $54m.

In March, Luk Fook reported a 28 per cent increase in revenue, driven by a post-Covid influx of tourists.

ource: DCLA

Wednesday, 30 October 2024

Record Gold Prices Hit Chow Tai Fook Sales

Chow Tai Fook (CTF), the jewelry chain with 7,500 stores across mainland China, posted a 21 per cent plunge in retail sales value (RSV) in the three months to 30 September, as gold prices hit an all-time high.

Chow Tai Fook (CTF), the jewelry chain with 7,500 stores across mainland China, posted a 21 per cent plunge in retail sales value (RSV) in the three months to 30 September, as gold prices hit an all-time high.

The Hong Kong-based company warned that interim profits for the half year to September could fall by 42 to 46 per cent.

Gold prices have broken multiple records in recent months and currently stand at just over $2,700 an ounce.

Central banks, particularly China’s, have been aggressively buying gold to diversify their reserves and reduce reliance on US dollars, thereby forcing the price up.

Before the gold surge CTF reported a record high revenue (up 18.5 per cent) and core operating profits for the year to 1 March (FY 2024).

Core operating profit for the year surged almost 29 per cent to US$1.58bn (HKD 12.2bn) with the company saying business had been boosted by post-Covid improvements in mobility and retail activity, especially tourism from mainland China to Hong Kong and Macau, which saw retail sales values rise by 32 per cent and 53 per cent respectively.

But in its latest quarterly update, CTF says: “Macro-economic externalities, particularly record gold prices, continued to weigh on consumer sentiment, a phenomenon observed across the industry”.

Same store sales across its franchised stores on mainland China fell by 24 per cent, and by 31 per cent at its outlets in Hong Kong and Macau.

Source: DCLA

Sunday, 29 September 2024

Yellow Gold Is Hot, Diamonds Are Not At Hong Kong Jewelry Trade Show

Jewellery & Gem World Hong Kong

The pulse of the jewelry industry and its relationship with the constantly changing world is reflected each year at Jewellery & Gem World Hong Kong (JGWHK).

This year the annual jewelry trade show attracted more than 3,300 exhibitors, a 5% decline from 2023, according to Informa Markets, which owns and operates the fair. Although final buyer numbers aren’t available, walking the floors on the first four days, it’s easy to see that foot traffic was down as well. Still the show is expected to attract about 50,000 visitors.

Buyers in the Fine Design Pavilion of Jewellery & Gem World Hong Kong 3,300 exhibitors
Buyers in the Fine Design Pavilion of Jewellery & Gem World Hong Kong

More important than the numbers themselves is what they represent. A major typhoon in the Shanghai area a few days before the show began meant many exhibitors and buyers from the area could not immediately make the trip to Hong Kong. Obviously, war in Ukraine and in Gaza has kept people in these regions from attending. After years of exponential growth, the U.S. jewelry market has softened, partly due to the upcoming presidential election. The China market has softened as well, reflecting the country’s overall economic challenges. These are the two largest markets in the world for jewelry. Then for the first time in memory, the fair coincided with the Mid-Autumn Festival on September 18, which further reduced overall attendance, at least temporarily.

For a fair that has been held during trade wars, citywide political protests and a once-in-a-century typhoon, these distractions were mild by comparison. Through it all JGWHK remains, by far, the largest jewelry trade fair in the world, and for good reason.

Read full article: DCLA

Sunday, 22 September 2024

“Most Coveted” A 16.9 ct Fancy Vivid Yellow Diamond

flawless 16.92 carat vivid yellow diamond

A flawless 16.92 carat vivid yellow diamond was unveiled last week at Jewellery & Gem World Hong Kong.

Mumbai based Venus Jewel says the radiant shaped natural diamond is one of the “most coveted diamonds” it has released in its 55 year history.

It was cut from a 28.78 carat rough stone. Natural vivid yellow colored diamonds are extremely rare. One out of approximately 10,000 carats mined is a natural fancy color diamond. Of those only a small percentage are fancy vivid, the highest grading for color saturation and brilliance.

“We are delighted to present the Yellow Lava, a true testament to our craftsmanship, energy and dynamism,” said Rajesh Shah, a partner in the company.

“The name Yellow Lava is derived from its evenly distributed vivid yellow color and flawless clarity.”

Source: DCLA

Sunday, 26 November 2023

Low Diamond Demand, Struggling Chinese Economy Dent TSL


Low Diamond Demand, Struggling Chinese Economy Dent TSL

Hong Kong-based jeweler Tse Sui Luen (TSL) reported a loss in the first fiscal half amid economic challenges in China and dwindling demand for diamond jewelry.

The company’s net loss came to HKD 58.3 million ($7.5 million) for the six months that ended September 30, compared with a profit of HKD 1.8 million ($230,000) a year ago, TSL said last week. Sales for the period rose 8% to HKD 1.35 billion ($172.8 million).

Revenue in mainland China, TSL’s biggest market, decreased 3.2% to HKD 870.6 million ($111.7 million) as consumers tightened their budgets in light of the challenging economy. The company also sold more gold products as diamond demand dropped.

“Affected by international economic concerns and China’s property sector challenges, consumers are more conservative in their spending,” the company stated. “The Chinese government has rolled out measures to bolster consumer confidence and speed up economic recovery, which has led to some improvement in retail sales. Riding on the uptrend of pure gold demand, the group has focused more on [that] business to partially compensate for the loss of sales caused by the sharp decline in diamond demand.”

In Hong Kong and Macau, sales surged 41% to HKD 407.5 million ($52.3 million) as the municipality saw a steady rebound in tourism following the reopening of its border with mainland China. The company also benefited from the Hong Kong government’s distribution of new stimulus vouchers, as well as large-scale campaigns to stimulate the economy.

“These government initiatives helped the group to achieve a notable increase in the turnover of its Hong Kong and Macau retail business,” Tse Sui Luen added.

Source: DCLA

Tuesday, 5 September 2023

Hong Kong Luxury Sales Strengthen Amid Tourism Boom


Hong Kong Luxury Sales Strengthen Amid Tourism Boom

Hong Kong retail sales continued to gain speed in July as tourists flocked back to the municipality and the job market improved.

Hong Kong retail sales from jewelry, watches, clocks and valuable gifts climbed 20% year on year to HKD 4.95 billion ($632.9 million) for the month, according to data the government’s Census and Statistics Department released last week. Retail sales across all product categories rose 17% to HKD 33 billion ($4.22 billion).

The growth also reflected a favorable comparison with the same period a year ago, when Hong Kong was experiencing tight Covid-19 restrictions. Tourism to the municipality was exceptionally low at the time. Much of Hong Kong’s luxury revenue is derived from visitors — primarily from China — who travel there to purchase goods. Hong Kong’s border with the mainland reopened at the start of the year.

For the first seven months, proceeds from jewelry, watches, clocks and valuable gifts surged 64% to HKD 35.36 billion ($4.52 billion). Total retail sales for the period jumped 20% to HKD 238.05 billion ($30.43 billion).

In July, 3.6 million visitors arrived in Hong Kong, compared to 48,048 during the same month last year. Of those who traveled to the municipality in June, 3 million were from the mainland, versus 40,083 in 2022.

“The value of total retail sales continued to increase visibly in July over a year earlier alongside the increase in visitor arrivals and positive consumption sentiment,” a government spokesperson said. “The revival in inbound tourism should continue to benefit the retail sector in the coming months. Improved labor-market conditions and the government’s various measures to support consumption should also help.”

Source: DCLA

Monday, 22 June 2020

Hong Kong August Shows Canceled


The Hong Kong Trade Development Council (HKTDC) has called off this year’s jewelry fairs, scheduled for August, after quarantine rules made the events inaccessible to overseas participants.
The HKTDC initially postponed the Hong Kong International Diamond, Gem & Pearl Show and the Hong Kong International Jewellery Show from March to August because of the coronavirus. On June 2, the municipality extended its 14-day compulsory quarantine for arrivals until September 18, as it’s still working to prevent a second wave. That forced the HKTDC to cancel the events entirely.
“The extension of this restriction means that overseas exhibitors and buyers will have great difficulty joining the [shows] if they were to run from August 3 to 6 as scheduled,” the council said Thursday in an announcement on its website. “In consultation with industry representatives, it has been decided that the next jewelry shows will be held in March 2021.”
The 2021 Hong Kong International Diamond, Gem & Pearl Show, for loose-stone exhibitors, will take place from March 1 to 5 at AsiaWorld-Expo. The Hong Kong International Jewellery Show, which focuses on finished jewelry, will run from March 3 to 7 at the Hong Kong Convention and Exhibition Centre. The council is also consulting with industry members about other promotional options to help companies do business in the current conditions, it said.
Meanwhile, Informa hasn’t confirmed whether its Jewellery & Gem World Hong Kong show will go ahead as planned from September 13 to 19. On June 4, the company said it would monitor the situation and work on “potential alternatives that will enable us to deliver the B2B [business-to-business] experience that you expect and deserve in a safe environment before the end of the year.”
The pandemic has forced the cancellation of most trade shows this year, with JCK Las Vegas and Baselworld also falling victim.
Source: DCLA

Hong Kong August Shows Canceled


The Hong Kong Trade Development Council (HKTDC) has called off this year’s jewelry fairs, scheduled for August, after quarantine rules made the events inaccessible to overseas participants.
The HKTDC initially postponed the Hong Kong International Diamond, Gem & Pearl Show and the Hong Kong International Jewellery Show from March to August because of the coronavirus. On June 2, the municipality extended its 14-day compulsory quarantine for arrivals until September 18, as it’s still working to prevent a second wave. That forced the HKTDC to cancel the events entirely.
“The extension of this restriction means that overseas exhibitors and buyers will have great difficulty joining the [shows] if they were to run from August 3 to 6 as scheduled,” the council said Thursday in an announcement on its website. “In consultation with industry representatives, it has been decided that the next jewelry shows will be held in March 2021.”
The 2021 Hong Kong International Diamond, Gem & Pearl Show, for loose-stone exhibitors, will take place from March 1 to 5 at AsiaWorld-Expo. The Hong Kong International Jewellery Show, which focuses on finished jewelry, will run from March 3 to 7 at the Hong Kong Convention and Exhibition Centre. The council is also consulting with industry members about other promotional options to help companies do business in the current conditions, it said.
Meanwhile, Informa hasn’t confirmed whether its Jewellery & Gem World Hong Kong show will go ahead as planned from September 13 to 19. On June 4, the company said it would monitor the situation and work on “potential alternatives that will enable us to deliver the B2B [business-to-business] experience that you expect and deserve in a safe environment before the end of the year.”
The pandemic has forced the cancellation of most trade shows this year, with JCK Las Vegas and Baselworld also falling victim.
Source: DCLA

Tiffany Buys Back Titanic Watch for Record $1.97m

Tiffany & Co paid a record $1.97m for a gold pocket watch it made in 1912, and which was gifted to the captain of a ship that rescued mo...