Chow Tai Fook Sales Get Bump from China Market
January 12, 2022
RAPAPORT... Retail sales at Hong Kong-based jeweler Chow Tai Fook rose 31% year on year in the third fiscal quarter amid strong domestic consumption and the opening of new stores in China.
Sales of gold jewelry also drove growth during the three months ending December 31, the jeweler said Tuesday. However, the Hong Kong and Macau regions saw sales falter, despite some economic recovery.
Retail sales surged 39% on the mainland. Revenue dropped 9% in Hong Kong, Macau and other markets as the price of gold fell and the company cut back on promotional campaigns that had driven purchases of gem-set jewelry the previous year, it noted.
Same-store sales on the mainland rose 11%, because “retail demand for gold jewelry and products remained resilient” and the price of gold improved. Hong Kong and Macau witnessed 14% same-store sales growth thanks to “stable local consumption in Hong Kong and recovering tourist spending in Macau,” Chow Tai Fook explained.
Meanwhile, same-store sales of gold products — including jewelry — grew 23% in China and leaped 47% in Hong Kong and Macau. The measure for gem-set jewelry and similar items fell 9% on the mainland and 19% in Hong Kong and Macau.
During the period, Chow Tai Fook opened a net 432 points of sale in mainland China and two in other markets. As at December 31, the group had a total of 5,646 stores in operation.
Image: A Chow Tai Fook experience store in Shenyang, China. (Chow Tai Fook)
Article originally published on Diamonds.net here