In the context of gold prices being forecast to increase sharply, the January 2020 business results report recently released by Phu Nhuan Jewelry Joint Stock Company (PNJ) showed many mixed developments in business results.
Among these, thanks to the attraction of the year-end shopping season with new store sales increasing by 40% in January 2020, PNJ's retail channel revenue increased by 16.5% over the same period in 2019, thereby increasing the proportion of retail channel contributions to total revenue to 65.4%.
However, in contrast to the growth rate of retail channels, PNJ's wholesale channel in January 2020 decreased by 32% compared to the same period in 2019, causing the proportion of wholesale channel revenue in PNJ's total revenue to decrease from 27% to 18%.
The factor that European customers' holidays are closely linked to the Tet holiday, so the interruption of export business time is a reason for the decline in canal revenue. More importantly, according to PNJ, the record high gold price also limits customers' demand for imports.
The complicated situation of the Corona virus (COVID-19) epidemic has also led to a decrease in demand for luxury goods, affecting the output of wholesale customers, PNJ said.
Combining retail, wholesale, export and trading channels of gold bars, PNJ's total net revenue in January 2020 reached VND 1,668 billion, down sharply from VND 1,929 billion in December 2019.
