Chow Tai Fook Jewellery Group Ltd. (01929.HK) saw a bigger drop in mainland sales in the three months to March than a year ago, the Hong Kong Economic Journal reports.
Sales value as well as same-store sales in mainland branches dropped over 25 percent during the period.
Same-store sales of jewelry items fell 24 percent while those of gold products were down 29 percent, the worst since the first quarter of 2015.
The company said a growing number of mainlanders are traveling overseas, where they shop for luxury items and other products, while the country’s slowing economy has weakened consumption appetite.
The Hong Kong and Macau markets posted a 26 percent decline in the value of combined sales and a 27 percent drop in same-store sales.
Analysts expect poor sales to continue in the second quarter, including the May 1 Golden Week.
However, they believe such negative factors have been priced in the company’s share price, which has plunged 40 percent over the past 12 months, suggesting that there could be a rebound once quarterly data improves.
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