HONG KONG: Spring might have come for Emperor Watch and Jewellery, as the Hong Kong-based luxury retailer reported a surprise turnaround in second-half profits following steep rental cuts and the return of mainland Chinese tourists to the territory. Majority controlled by the family of Hong Kong entertainment mogul Albert Yeung Sau-shing, Emperor is a retailer of European-made watches and jewelry with operations at home, in mainland China and Singapore. Emperor posted Thursday a modest net profit of 3.8 million Hong Kong dollars ($490,000) in the second half of last year, narrowing its full-year loss to HK$64.8 million from HK$120.1 million a year ago.
Group revenue was down 17.8% on the year to HK$3.6 billion for 2016, dragged lower by a slowing Chinese economy and austerity measures that stifled luxury consumption. Its sales of watches and jewelry were down 19% and 12% respectively. “There’s been a gradual pick-up in watch sales recently,” said Emperor’s Chairperson Cindy Yeung Lork-sze at a briefing on Friday. She attributed the early signs of recovery to a stronger Japanese yen, and terrorism in Europe prompting more mainland visitors to visit Hong Kong.