World’s biggest jewellery group blames slow economy on sluggish sales.
Shares in the world’s biggest jewellery group, China’s Chow Tai Fook, fell more than 7% last week after it revealed sluggish same-store sales.
Chow Tai Fook blamed the slower economy in China for its fall to HK$ 9.63 (0.79p), its lowest price since July 3.
Last Wednesday Chow Tai Fook revealed that its revenue for Q2 grew 16%, however sale store sales growth was up just 4%, falling in Hong Kong and Macau, with fewer sales of high-end gemstone jewellery.
For the year ended March 2012, the company posted a 61% rise in revenue.
It is believes that its same-store sales growth was lower than the company’s full year guidance of mid-teens and also weaker than market expected.
In November last year the company announced that would launch a US$3 billion (£1.89bn) IPO on the Hong Kong stock exchange.
Chow Tai Fook had originally valued the IPO at more than $3 billion but reduced this after taking “tough global market conditions” into account.