News

Jan 11, 2018

Chow Tai Fook Q3 FY2018 Sales Up on Continuing Market Recovery

Chinese jewellery retailer Chow Tai Fook Jewellery Group Ltd reported a 5% year-on-year increase in same store sales (SSS) for the three-month period ended December 31, 2017 (Q3 FY2018) in each of its key markets, Mainland China as well as Hong Kong & Macau, driven by a continuing recovery in demand.

Releasing unaudited results for the period, the Company said that SSS growth by volume remained negative in both markets, with Mainland China registering a 2% drop and HK-Macau, a 4% drop.

Reflecting trends seen in Q2, SSS growth of gem-set jewellery in Mainland China declined slightly, yet same store average selling price (ASP) improved to HK$7,300 (3QFY2017: HK$6,600). On the other hand, in Hong Kong and Macau, the improvement in SSS performance for gem-set jewellery was driven by an increase in both volume and ASP during the quarter with the former recording a double-digit growth. Same store ASP was HK$11,800 (3QFY2017: HK$11,500).

Performance of gold products in both markets was driven by the increase in ASP to HK$4,100 (3QFY2017: HK$3,700) in Mainland China and HK$7,000 (3QFY2017: HK$6,600) in Hong Kong and Macau. This was largely on account of an increase in gold price, up 5% over a year earlier, and average weight per gold product sold.

In Mainland China, the Company noted that jewellery e-commerce continued to expand with a 57% year-on-year growth in value and a volume increase of 20%.

In Hong Kong and Macau, the percentage of RSV settled by China UnionPay, Alipay, WeChat Pay or RMB to the total RSV of Hong Kong and Macau market, a proxy for sales contribution from Mainland tourists, declined to 42% in the quarter as compared to 45% of the same period last year.

The Group opened a net of 77 POS during the quarter, which included a net opening of 74 POS in Mainland China and 3 POS in Hong Kong, bringing the total number of POS to 2,565 as at 31 December 2017.