Pursuits
Chow Tai Fook Shares Hit Month-Low as Profit to Miss Estimates
- Jewelry retailer’s fiscal 2016 earnings to drop 40%-50%
- Profit decrease due to weak Chinese demand and gold hedge loss
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Chow Tai Fook Jewellery Group Ltd.’s shares fell to the lowest in a month after it said full-year profit fell as much as 50 percent as weak Chinese consumer demand undercut revenue and the world’s largest jewelry retailer posted hedging losses on gold loans.
Profit for the year that ended March 31 decreased 40 percent to 50 percent compared to the previous year, the company said in a Hong Kong stock exchange filing Thursday, citing a preliminary review. Analysts had estimated a 36 percent decrease in net income before the profit warning, according to data compiled by Bloomberg. The company issued a similar warning in November for first-half earnings, which plunged 42 percent from a year earlier due to weaker sales in Hong Kong and Macau.