Oct 20, 2016

Chow Tai Fook’s Retail Sales Fall for both Mainland China and Kong Kong-Macau

Announcing its unaudited results for the quarter ended September 30, 2016 (Second Quarter), Chow Tai Fook Jewellery Group Limited reported that Retail Sales Value (RSV) had fallen in the markets of both, mainland China; as well as Hong Kong & Macau (taken together). While RSV decreased by 17% in the former, it dropped by 33% in the latter.

The Company explained that this was due to the “high base” resulting from a surge in gold products in the same period last year, as prices of gold had fallen at that time.

Same store sales also showed a decline: of 22% in Mainland China and 30% in Hong Kong & Macau; while same store sales volumes were lower by 32% in the former and 39% in the latter.

The share of the different segments offered for sale by Chow Tai Fook was as follows: gemset jewellery took a 28% share in mainland China, while it had a  27% share in Hong Kong & Macau; gold products accounted for 52% of sales in the former and 52% in the latter; platinum/karat gold products had a 14% share in the former and a 12% share in the later; and watches took a share of 6% and 7% respectively.