Chow Tai Fook Announces Profit Warning

(IDEX Online News) – Chow Tai Fook Jewelry Group Ltd.’s has warned that its full-year profits could fall as much as 50 percent, due to weak Chinese consumer demand, according to a report on Bloomberg.com.

The Hong Kong-based company, the world’s largest jewelry retailer said that its shares fell to their lowest point in a month, while declaring that year-on-year profits for the year ended March 31 had plummeted 40 percent to 50 percent.

In April, Chow Tai Fook reported a 26-percent decline in retail sales for the three-month period ended March 31, which the company explained was due to weakening demand for luxury items and a slowdown in economic growth. Declining tourist traffic and weaker local consumer sentiment in Hong Kong and Macau were also factors in Chow Tai Fook’s performance.

Chow Tai Fook released a similar profit warning in November for first-half year earnings, which showed a 42-percent year-on-year decrease.