Chow Tai Fook Sees Strong Growth in China

RAPAPORT… Chow Tai Fook’s sales increased in the fourth quarter, amid
a rise in demand for gold products and stronger consumer sentiment on the
mainland.

Retail sales jumped 24% in mainland China in the three
months ending March 31, while same-store sales — at branches open for at least
year — climbed 9%, the jeweler reported last week. Hong Kong and Macau retail
sales increased 7% during the period, with same-store sales up 1%. Same-store
sales only include shops that Chow Tai Fook operates itself, as opposed to
franchises.

Gold-jewelry sales grew 14% on a same-store basis in
mainland China, and 3% in Hong Kong and Macau. The improvement reflected a
higher average sales price and an increase in the average weight per gold
product sold, the company noted. Strong sales of the jewelry retailer’s CTF HUA
collection also contributed to the rise.

On a same-store basis, sales of gem-set jewelry dropped 10% in Hong Kong and Macau and
remained flat in mainland China. Retail sales of the product increased 12% on
the mainland, the company noted.

Chow Tai Fook opened 47 new outlets in mainland China and
two in other regions during the January-to-March period. The retailer operated
3,134 locations at the end of the quarter.

Image: A Chow Tai Fook store in Sheung Shui, Hong Kong. (Flickr)