Apr 23, 2019

Chow Tai Fook Reports Positive Same Store Sales Growth in Mainland China and Hong Kong and Macau

Chow Tai Fook Jewellery Group Limited releasing unaudited key operational data of the Group for the three months ended March 31, 2019 (Fourth Quarter), along with the Company’s FY2018-19 interim report stated that both Mainland China, and the Hong Kong and Macau markets had shown an improvement in same store sales growth in the period.  

“Both Mainland China and Hong Kong and Macau markets demonstrated an improvement in SSSG in the Quarter when compared to the third quarter,” Chow Tai Fook commented. “Mainland China outperformed Hong Kong and Macau amid a more favourable comparison base. In terms of same store Average Selling Price (ASP), both markets continued to exhibit a positive growth in the Fourth Quarter.”

By markets, total Retail Sales Value (RSV) increased by 24% in Mainland China and 7% in Hong Kong and Macau; Same Store Sales (SSS) grew by 9% in Mainland China and 1% in Hong Kong and Macau; and Same Store Sales Volume Growth (SSVG) was 2% down in Mainland China and 4% lower in Hong Kong and Macau.

Same Store Sales growth by product was flat (0% growth) in the case of gemset jewellery, however, while RSV recorded a growth at 12%. SSSG actually shrank by 10% in Hong Kong and Macau. For gold products, SSSG in Mainland China was up 14%; and Hong Kong and Macau saw an increase of 3% in the category.

“Same store volume growth returned to positive in both markets despite the decline in ASP. In Mainland China, same store ASP of gem-set jewellery was HK$ 6,500 (4QFY2018: HK$ 6,700) while that of Hong Kong and Macau was HK$ 11,400 (4QFY2018: HK$ 13,000),” Chow Tai Fook elaborated.

The Company explained that the increase in SSSG of gold products in both markets was mainly attributable to the improvement in same store ASP during the Quarter as the average weight per gold product sold increased and partly due to the success of “CTF HUÁ” collection. “ASP of gold products jumped to HK$ 4,900 (4QFY2018: HK$ 4,100) in Mainland China and HK$ 8,900 (4QFY2018: HK$ 7,900) in Hong Kong and Macau during the Quarter,” Chow Tai Fook noted. “The average international gold price in the Quarter dropped by 2% when compared to the same period last year.”

In Mainland China, RSV of the e-commerce business rose 41% year-on-year while volume recorded an increase of 28% in the Fourth Quarter.

Further, the Company revealed: “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, was recorded at 48% in the Quarter as compared to 47% in the third quarter and 51% of the same period last year.”

The Group opened a net of 47 POS in Mainland China during the Quarter, which included a net opening of 39 Chow Tai Fook Jewellery POS; four Monologue POS; three Soinlove POS, two CTF Watch POS and one T Mark POS. On the other hand, the Group closed two Hearts on Fire POS.

In other markets, the Group opened two Chow Tai Fook Jewellery POS, located in Cambodia and Vietnam, respectively.

As at 31 March 2019, the Group had 3,134 POS in total.