Oriental Watch sales slide, but profit rises
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Oriental Watch Holdings sold fewer watches in the six months to September, but at a higher margin, boosting profit by 39 per cent. Group turnover decreased by 21.7 per cent to HK$1.181 billion compared with $1.508 billion during the same period last year.
Gross profit increased by 13.4 per cent to $288 million while gross profit margin increased to 24.4 per cent. Oriental Watch says rent negotiations contributed to lower overheads, helping profit attributable to shareholders rise 39.1 per cent to $64 million.
As at September 30, the group operated 62 retail stores in Greater China: 11 in Hong Kong, one in Macau, three in Taiwan and 47 in Mainland China.
Questions & Answers
Q.What was the total value of Oriental Watch Holdings' sales in the six months up to September?
What was the total value of Oriental Watch Holdings' sales in the six months up to September?
The group's turnover for the six-month period decreased to HK$1.181 billion. This represents a 21.7 per cent reduction compared to the HK$1.508 billion reported in the same period last year.
Q.How many retail stores does Oriental Watch Holdings currently operate in Greater China?
How many retail stores does Oriental Watch Holdings currently operate in Greater China?
As of September 30, Oriental Watch Holdings operates a total of 62 retail stores across Greater China. This includes 11 stores in Hong Kong, one in Macau, three in Taiwan, and 47 in Mainland China.
Q.What was the main reason cited for the increase in profit despite lower sales volume?
What was the main reason cited for the increase in profit despite lower sales volume?
The primary reason for the profit increase was a higher profit margin on sales. Also, rent negotiations contributed to lower overheads, which further helped to boost the profit attributable to shareholders.
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