HK Stock Market Move | ORIENTAL WATCH (00398) fell more than 5% after the performance report. Annual net profit attributable to shareholders decreased by 19.96% year-on-year.

ORIENTAL WATCH (00398) fell by more than 5% after its performance results, with a decrease of 5.41% to HK$3.5 as of the time of writing, with a trading volume of HK$116.37 million. On the news front, on June 19, ORIENTAL WATCH released its annual performance results for the year ending March 31, 2025. The group earned HK$3.45 billion in revenue during the period, a decrease of 5.2% year-on-year; the net profit attributable to owners of the company decreased by 19.96% to HK$200 million; earnings per share were 41.14 Hong Kong cents. The company plans to distribute a final dividend of HK$4.2 cents per share and a special dividend of HK$12.5 cents per share. In 2024, the macroeconomic challenges reshaped the consumption patterns of luxury goods. Due to escalating geopolitical tensions and fluctuating interest rates, market instability worsened, putting pressure on the financial conditions of households leading to reduced spending. The real estate markets in major economies remained sluggish, resulting in a decrease in household wealth and an increase in unemployment rates. As a result, consumers became more cautious in managing their finances, focusing more on necessities, changing their habits and trends in buying luxury goods. As a result of these unfavorable factors, the group's revenue decreased by 5.2% annually, gross profit decreased by 5.6% to HK$1.086 billion (2024: HK$1.151 billion), and gross profit margin fell to 31.5% (2024: 31.6%), in line with the decrease in revenue and cost increases due to brand pricing adjustments.