Tourist spending in Hong Kong shows polarization, with sales of mid-priced products weakened compared to the past, gold jewelry maker Chow Sang Sang (0116) said.
Chairman Vincent Chow Wing-shing said spending on entry-level products has increased, while consumption of higher-end goods has declined, though it remains sustainable.
Chow revealed that the same store sales during the Labour Day Golden Week were satisfactory and expressed confidence in sales in the next half year – including during the National Day holiday – under the SAR government’s support to boost tourism.
He said it’s hard to predict international gold prices or estimate the impact on gold jewelry demand amid geopolitical tensions and economic development trends.
Chow noted the company has implemented hedging strategies to mitigate the impact of gold price fluctuations on its balance sheet.
He added that the company will continue to adjust its mainland store network by closing underperforming outlets and opening new ones in high-potential, high-end locations.
STAFF REPORTER
