Sales at Chow Tai Fook’s mainland China stores grew in the third quarter amid a significant expansion of the jeweler’s network in the country.
Total retail sales climbed 17% year on year in China for the three months ending December 31, while same-store sales — at locations open for more than a year — rose 2%. Chow Tai Fook added a net 279 points of sale in the country during the period, contributing to the growth.
However, in Hong Kong and Macau, total retail sales slipped 38% as social unrest continued to impact consumer spending, with same-store sales falling 35%. Expansion of its business in the municipality was more muted, with Chow Tai Fook only opening two new points of sale during the quarter.
“Performance in Hong Kong was negatively affected by weak consumer sentiment and stagnant customer traffic,” the company said in a trading update last week. “Consumers held back spending.”
Same-store sales of gem-set jewelry slid 53% in Hong Kong and Macau, and grew 1% in China, while gold products fell 26% in Hong Kong and Macau and 1% on the mainland. Sales volume for the company’s gold products declined due to a 21% jump in the average international price of the metal.
As of December 31, Chow Tai Fook had 3,789 points of sale.
Source – Rapaport