Chow Tai Fook Sales Recover

Sales rose at Chow Tai Fook in the fourth fiscal quarter as the Hong Kong-based jewelry retailer benefited from the reopening of markets across greater China.

“General mobility and retail activity in mainland China…and Hong Kong and Macau…indicated signs of recovery following the shift in Covid-19 policy in the mainland,” the company said Friday.

Retail sales grew 14% year on year for the three months ending March 31, reflecting a 10% increase in mainland China and a 71% jump in other markets, the jeweler reported. Despite being headquartered in Hong Kong, Chow Tai Fook derives most of its revenue from the mainland — around 90% for the quarter.

The region began to rebound in December when the Chinese government ended its long-running zero-Covid policy. In January, it opened the border with Hong Kong, boosting the important tourist retail sector. The lack of this income had damaged Hong Kong’s economy since the beginning of the pandemic.

Same-store sales in Hong Kong and Macau — at shops that Chow Tai Fook operates itself and that had been open for a year — soared 97%. On the mainland, sales dropped 6% by this measure, which excludes franchise stores. Gold jewelry performed better than gem-set pieces in both geographical segments.

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