Most recently, they have opened a U.S. subsidiary. They have suffered large losses during the last two years. The sale of a narrow line of luxury products, such as fine timepieces, will provide the owners with a nice business, but it seldom provides investors with fine returns. During boom times in the economy people tend to splurge and buy expensive watches and jewelry, but in lean times these retailers suffer worse than most. Few have successfully expanded their premium brands internationally, examples being Mikimoto Pearls and Tiffany.
Margins are very low.
There is no growth. Investors may want to re-focus on higher growth industries with higher margin potentials. The study is offered for informational purposes only and should not be regarded as individual advice or used as the sole basis for any investment decisions. Individual investors should seek the advice of a professional, as appropriate, regarding the evaluation of any specific information, opinion, advice, or other content. SPH AsiaOne Ltd. All rights reserved.