Oriental Watch Holdings (00398.HK) saw its stock price plummet by 5.41% in Friday's pre-market trading session, following the release of its annual financial results for the fiscal year ended March 31, 2025. The luxury watch retailer reported a 5.2% decrease in turnover, which appears to have overshadowed the announcement of a special dividend.

According to the company's financial report, Oriental Watch's revenue fell to HK$3.45 billion, down from the previous year. Despite the revenue decline, the company managed to achieve a profit attributable to owners of HK$200 million, with earnings per share (EPS) standing at 41.14 HK cents. In an effort to reward shareholders, the Board declared a final dividend of 4.2 HK cents per share, along with a special dividend of 12.5 HK cents per share.

The market's negative reaction suggests that investors are more concerned about the company's declining sales than they are impressed by the dividend announcements. The decrease in revenue may be indicative of challenges in the luxury watch market or increased competition in Oriental Watch's key operating regions of Hong Kong, Macau, and mainland China. As the company did not provide specific outlook or forward guidance in its report, investors might be cautious about its future performance, contributing to the sharp stock price decline.