News

Jul 23, 2018

Chow Tai Fook Sales Strengthen During Q1 FY 2019

Chow Tai Fook Jewellery Group Limited reported improved performance in value of total retail sales (RSV) across both its major markets, Mainland China and Hong Kong and Macau, during the three-month period ended June 30, 2018 (Q1 FY2019). It said that the latter market recorded an impressive growth, benefitting from an improving local consumer spending and revival in visitors from the Mainland.

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, improved to 48% in the Quarter as compared to 41% of the same period last year, Chow Tai Fook said.

While RSV in Mainland China was up 11%, in Hong Kong and Macau it soared by as much as 21%, the jeweller stated while releasing its unaudited operational data for Q1 FY2019 recently. On the other hand, SSSG was 4% in Mainland China and a massive 26% in HK and Macau. In Mainland China, SSSG, inclusive of e-commerce business, reached 5% with a volume growth of 4%.

Demand for gold products was a strong driver of sales in both markets, registering increases both in terms of volume and price. Same store Average Selling Price (ASP) was HK$4,100 (1QFY2018: HK$3,800) in Mainland China while HK$7,900 (1QFY2018: HK$7,200) in Hong Kong and Macau in the Quarter. The average international gold price in the Quarter rose by 4% when compared to the same period last year.

However, in Mainland China, SSSG of gem-set jewellery declined by 4%, though same store Average Selling Price (ASP) improved to HK$7,000 (1QFY2018: HK$6,500). In Hong Kong and Macau, both volume and ASP of gem-set jewellery increased at same store level. Same store volume recorded a double-digit growth and ASP reached HK$11,100 (1QFY2018: HK$10,900) during the Quarter.

The e-commerce business continued to boom in Mainland China rising 24% in value terms year-on-year, with a volume increase of 25% during the quarter. Similarly,

The Group reported that it had opened a net of 71 POS in Mainland China during the Quarter, which included a net opening of 62 Chow Tai Fook Jewellery POS, 1 CTF Watch POS, 3 SOINLOVE POS and 5 MONOLOGUE POS. While in Hong Kong, Macau and other markets, the Group opened 1 CHOW TAI FOOK T MARK POS in Hong Kong and 3 Chow Tai Fook Jewellery POS, which were located in Japan, Malaysia and Singapore. As at 30 June 2018, the Group had 2,660 POS in total.