RAPAPORT… Sales at Hong Kong-based jeweler Chow Tai Fook grew almost 18% in the last three months of 2020 as a recovery in mainland China outweighed weakness in its home territory.
“In light of the easing Covid-19 situation in mainland China, business there sustained an encouraging improvement,” the company said in a trading update on Monday. “Challenging macros, the pandemic development and closure of major border crossings still weighed on retail demand in Hong Kong and Macau during the quarter.”
Retail sales, including at franchised stores, rose 17.5% year on year during the third fiscal quarter ending December 31. Sales on the mainland rose 26%, while same-store sales — at self-operated branches that opened before April 1, 2019 — increased 12%.
However, retail sales in Hong Kong, Macau and other markets dropped 12.5%, with same-store sales down 31%, as reduced tourism continued to hurt the luxury sector.
Image: Chow Tai Fook store in Wuhan, China. (Chow Tai Fook)
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