SK Jewellery Sees Profit Slump

RAPAPORT… Singapore-based SK Jewellery Group reported a sharp drop in earnings during the first half of 2020 as store closures and other restrictions implemented during the coronavirus pandemic impacted sales.

Net profit fell 81% to SGD 514,000 ($376,256) as revenue slid 44% to SGD 39.8 million ($29.1 million) during the period ending June 30. The jewelry retailer experienced similar steep declines in 2019 resulting from global economic challenges in key markets.

The company maintained a cautious outlook for its operations, which includes more than 60 stores across Singapore and Malaysia.

“The Covid-19 uncertainties and general economic conditions will continue to dampen the retail market,” management explained in the interim earnings report published last week. A prolonged slowdown caused by the disruption of tourism, and a weakened labor market, continue to weigh heavily on spending on discretionary items, the company noted.

Ongoing tensions between the US and China are causing uncertainty over global trade, the jeweler added. SK launched two flagship stores in the Chinese cities of Chongqing and Chengdu last year, outlining plans to expand further into China through franchise stores.

Image: Items from SK Jewellery’s Star Carat line of lab-grown diamonds. (SK Jewellery)