Chow Tai Fook sales up in financial Q1

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Luxury jewellery company Chow Tai Fook Jewellery Group Limited has seen an across-the-board uptick in its results for its first financial quarter in the MSAR and in Hong Kong, as well as flat growth or upticks in China, according to the group’s filing with the Hong Kong Stock Exchange.
Retail sales value growth and same store volume growth in the SARs both went up 7 per cent year-on-year in the quarter ended June 30, while same store sales growth saw a 5 per cent uptick year-on-year.
Growth in China was highest in retail sales value, which rose 17 per cent year-on-year, while that of same store sales increased 11 per cent year-on-year. Same stores sales volume growth was flat, at no increase.
By product, gold saw the most growth in same store sales, both in the Mainland and the SARs, with a 16 per cent uptick in China and a 9 per cent rise in Macau and Hong Kong, year-on-year. Gem-set jewellery saw negative growth in the SARs, down 4 per cent year-on-year, while on the Mainland same store sales growth was 3 per cent, year-on-year.
The average selling price for gold products in the Mainland during the period was HK$3,600 during the quarter, while that in the SARs was HK$7,100. ‘The increase in average sales price was primarily attributable to the gain in the average weight per gold product sold,’ notes the filing.
For gem-set jewellery the Mainland increase in same store sales was ‘driven by an increase in both volume and average sales price’ with the average sales price in the Mainland at HK$6,100 and in the SARs at HK$10,800 during the quarter.
The percentage of total retail sales value paid out via UnionPay cards or through Chinese yuan in the SARs fell by 5 per cent year-on-year, to 40 per cent, according to the filing.
The most recent data from the Statistics and Census Service (DSEC) shows that in May of this year imports of gold jewellery went up by 73.4 per cent year-on-year, while an April retail survey found that 68 per cent of watches, clocks and jewellery retail respondents had seen a year-on-year increase in sales during the month.
For the group’s last financial year, ended March 31, it recorded profits of HK$3.06 billion, a 3.9 per cent uptick year-on-year, while revenues fell 9.4 per cent year-on-year to HK$51.25 billion, according to its filing.