Chow Tai Fook Sales Rebound in Second Quarter

Retail sales at Hong Kong-based jeweler Chow Tai Fook rose in the second fiscal quarter following a recovery in demand for both plain gold and diamond- and gem-set goods.

Revenue climbed 4.1% year on year for the three months that ended September 30, the company said Friday.  The growth also comes amid strong gold rates, which led to an increase in the average sale price, as well as the retailer’s focus on transforming its brand and strengthening its collections.

“The second quarter marked a significant turning point of our business,” Chow Tai Fook stated. “Same-store sales growth rebounded across mainland China and Hong Kong and Macau during the period, supported by the strong momentum in our fixed-price products and an improving trend in weight-based gold products.”

Retail sales in Hong Kong and Macau, which accounts for 13% of the company’s total revenue, jumped 11%. In China — which constitutes the remaining 87% — sales grew 3%. Same-store sales saw a 6% rise in Hong Kong and Macau. Sales in Hong Kong were up 3.2%, while Macau experienced a 17% hike. On the mainland, same-store sales increased 8%.

Meanwhile, same-store sales of gold products — including jewelry — rose 11% in China, while gem-set jewelry noted a 7% bump. In Hong Kong and Macau, gold products grew 10% and gem-set jewelry advanced 5%.

During the quarter, Chow Tai Fook closed a net 300 stores on the mainland to remove underperforming shops and streamline its network, it added. The company currently operates 6,041 locations overall.

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