Retail in Asia

In Trends

China’s Gome shares slide to record low after loss warning

Shares of Gome Electrical Appliances, China’s number two home appliance retailer which is backed by private equity firm Bain Capital, tumbled more than 17 percent to a record low on Wednesday after it became the latest consumer-related company to warn of weak profits.

Gome and bigger rival Suning, seen by some as China’s answer to Best Buy, have joined a host of companies ranging from a steelmaker to the country’s biggest airline to report or flag weak earnings as growth in the world’s second biggest economy slows.

Gome said on Tuesday it would post a net loss for the first half of 2012 due to a drop in sales and losses attributable to its e-commerce business.

(Source: CNBC)