Premier watch retailer Ernest Borel Holdings has issued a stock exchange warning that it expects to have a net loss for the six months ending June 30 following a net profit of about HK$10.2 million for the same period last year.
The company says the expected turnabout is primarily because of an approximate 31 per cent drop in revenue as well as a decrease in gross profit and margin through the deterioration of the premium watch retail market in mainland China and Hong Kong. This had led to fewer orders being placed by watch retailers.