Hong Kong-listed Oriental Watch Holdings has posted declines in both sales and profit for the six months ended September 30 amid weak consumer sentiment.

The company’s revenue was down 2.6 per cent year-on-year to HK$1.8 billion (US$231.2 million). The 1.6 per cent growth in Mainland China was more than offset by the 7.6 per cent drop in Hong Kong and 14.4 per cent decline in Macau.

Operating profit decreased 13.5 per cent to HK$186 million, and profit attributable to the company’s owners fell 13.8 per cent to HK$119 million.

The company management attributed the declines to the weakened investment market that adversely affected consumer sentiment. Growing employment concerns and the lack of growth in real purchasing power also contributed to lower demand for luxury goods. 

While challenges remained in the Mainland China market, the company said its collaborations with various brands and the openings of new boutiques helped boost sales growth.

For Hong Kong, the sustained strength of the US dollar and Hong Kong dollar led to an uptick in outbound travel and a shift in consumer habits, with more individuals choosing to visit and purchase goods outside Hong Kong.

As of September 30, Oriental Watch operated 44 retail points in the Greater China region.

The company expects watch sales to gradually return to a satisfactory level as the governments in Mainland China and Hong Kong introduce stimulus measures to boost the economy and tourism.

• Further reading: Reduced rents, high-end products help Oriental Watch stay in profit