Sunday, July 12 2020


Jewellery firm loses as stores close for virus fight

Update: May, 21/2020 - 15:21


Customers at a PNJ store. The company suffered losses in April because stores were closed during a two-week travel restriction to prevent the virus outbreak. — Photo

HÀ NỘI — Phú Nhuận Jewellery JSC (PNJ) has reported its revenue in April dropped 47 per cent on-year to VNĐ501 billion (US$21.5 million).

The company recorded a loss of VNĐ89 billion in April. PNJ made a profit of VNĐ52 billion in April 2019.

In the first three months of the year, PNJ earned VNĐ5 trillion worth of revenue and VNĐ511.7 billion worth of profit.

Q1 revenue was up 4.5 per cent on-year but profit slid 5.8 per cent compared to the first quarter of 2019.

According to the jewellery retailer, stores were closed in the first half of April on the restriction rules by the Government to prevent the spread of coronavirus.

Revenue of selling jewellery products fell 62 per cent on-year, the most among PNJ’s sale activities. Meanwhile, gold sales were up 42 per cent on-year as investors and buyers sought safe havens in gold amid the virus outbreak.

Wholesale, institutional sales, and exports were heavily affected by COVID-19. The company reported its gross profit margin in April lost 16.2 percentage points to 8.4 per cent from 24.6 per cent in April 2020.

Since Việt Nam re-opened the economy after two weeks of social distancing, PNJ has seen its sales activity improve.

At the end of April, PNJ had a total of 292 PNJ Gold stores, 53 PNJ Silver stores and 33 PNJ Watch stores. In the first four months, the company opened 16 jewellery and watch stores while closing five jewellery stores.

The company shares (HoSE: PNJ) slipped 1.2 per cent to trade at VNĐ63,200 apiece on Thursday. — VNS


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