Chow Tai Fook Jewellery Group Ltd. (01929.HK) sees a weak outlook in the next three months amid poor consumer sentiment, the Hong Kong Economic Journal reported Friday.
The jewelry retailer posted a 10 percent drop in overall sales and an 18 percent decline in same-store sales in the quarter to December.
Although sales of high-end jewelry rose 4 to 5 percent during the Christmas holidays amid aggressive promotions, overall sales plunged 25 percent for the same period, managing director Kent Wong Siu-kee said.
Wong said China’s intensified campaign against corruption and lavish lifestyles has had an impact on demand.
The weak market outlook is expected to persist and may prompt the company to hold back expansion plans.
It had earlier planned to open 200 stores in the region each year, but it may now lower the pace to 190 stores this year, Wong said.
The company had 2,243 stores at the end of 2014.
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