Losses widen for Larry Jewelry in subdued luxury-goods market

Listed Hong Kong jewelry and Chinese-medicine retailer Larry Jewelry has reported a higher loss as its sales plunged 23.1 percent in the six months to June.

Sales in its jewelry business fell by 17.6 percent, largely in the Hong Kong market, however, the group achieved a better profit margin both there and in Singapore. The company said the luxury-goods market remained soft in the first half of the year.

The Tung Fong Hung (TFH) business, which retails Chinese pharmaceutical products, dry seafood, health products, and foodstuffs in Hong Kong, Macau and Mainland China, recorded a sales decline of about 25 percent. TFH has 15 stores in Hong Kong, two in Macau and 36 on the mainland.

The company said it will review the sales network and customer focus of TFH and introduce more locally made products to suit the needs of domestic market through its newly refurbished food and traditional Chinese medicine production facilities.

The loss attributable to shareholders was HK$49.485 million for the six months to June 30, up from $41.066 million in the same period last year, on group sales of $147.138 million, down from $191.236 million.

A 31.2-per-cent decrease in gross profit margin was attributed to changes in the company’s product mix during the period.

Executive director Danny Wong said that in light of the recent business environment and financial resources on hand, the group will continue to seek suitable business opportunities to diversify its existing business stream.

“The group remains cautiously optimistic in the luxury jewelry market in the long-run. [We] will explore opportunities to broaden the geographic base of customers to markets outside Hong Kong and Singapore and increase its visibility across Southeast Asian countries,” he said.

“The group also seeks to achieve a diversified customer base through the introduction of new distinctive and unique product designs to more youthful, cosmopolitan audience.”