Slow-moving stock and falling sales due to the Covid-19 pandemic have prompted listed Hong Kong timepiece retailer Oriental Watch to issue a profit warning.
The company has advised the stock exchange that net profit for the year to March 31 will fall by about 20 percent.
Furthermore, for the two months ended May 31, the group’s revenue decreased by more than 10 percent compared with last year (when sales were impacted by social unrest in the territory).
During the quarter to March, Oriental Watch has allowed for impairment of assets, plant and equipment and provisioned for “slow-moving watches”.
“There has been no change in the group’s operation as a result of the Covid-19 outbreak and its financial position continues to be strong,” said chairman Yeung Ming Biu in the filing.