New Collection Boosts Chow Tai Fook’s Revenue

Sales at Chow Tai Fook rose in the first fiscal quarter, as it continued its brand transformation and saw steady consumer demand across its key markets.

Group revenue increased 15% year on year for the first three months that ended June 30, the Hong Kong-based jeweler reported last week. Sales were up 11% in China and improved 45% in Hong Kong and Macau. The mainland comprised 84% of the group’s revenue, while Hong Kong and Macau made up 16%.

Same-store sales – at branches open for at least a year, excluding franchises – grew 20% in China and 42% in Hong Kong and Macau. Same-store sales of gold jewelry advanced 38% on the mainland and spiked 64% in Hong Kong and Macau. Meanwhile, fixed-priced jewelry slipped 1% in China and climbed 13% in Hong Kong and Macau.

In April, the group launched the Dawn Collection, a signature line featuring distinctive designs, styles, colors and craftmanship. Its sales exceeded HKD 870 million ($110.9 million) during the first quarter, surpassing expectations.

Over the three months, Chow Tai Fook closed a net 258 stores in mainland China, and one in Hong Kong and Macau.  

“During the quarter, we continued to progress our brand-transformation journey, reinforcing the group’s brand positioning and driving high-quality earnings,” Chow Tai Fook commented. “We also expanded our luxury-format store network by rolling out four stores in premium shopping malls like Changsha International Finance Square and Deji Plaza in Nanjing, bringing the total number of luxury-format stores in the mainland to 12. In addition, we made another significant step in our international expansion with the opening of a luxury-format store at Oakridge Park in Vancouver, Canada, a world-class lifestyle hub.”

Image: A Chow Tai Fook store in Hong Kong. (Shutterstock)