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Festive Demand Boosts Chow Tai Fook Revenue

June 18, 2024  |  Leah Meirovich
A chow Tai Fook store in HK image

Group revenue at Chow Tai Fook grew 15% for the full fiscal year as strong demand for the festive and holiday seasons drove both local and tourist spending. 

Sales rose to a record HKD 108.71 billion ($13.92 billion) for the 12 months ending March 31, the company said last week. Plain gold jewelry proved the most popular with consumers, especially the younger generation, the company noted. The continued rebound in tourism from Chinese buyers heading to Hong Kong to purchase luxury goods also supported revenue, as did the opening of new stores on the mainland. Profit for the period climbed 20% to HKD 6.61 billion ($846.2 million) 

“Despite the challenging macro environment, jewelry consumption in mainland China remained resilient, fueled by festive demand…. Strength in gold products continued given its nature of value preservation and defensiveness amidst the uncertain macro environment and increasing popularity among youngsters,” the company observed. “Over 50% of our total stores in the mainland were opened in the last two to four years, and we have observed a healthy ramp-up across new stores in lower-tier cities.” 

Same-store sales inched up 1.8% for the year in mainland China, jumping 42% in Hong Kong and Macau. Sales have been consistently increasing since the government reopened the border between Hong Kong and the mainland at the start of 2023. 

However, since the close of the fiscal year, group revenue at Chow Tai Fook slipped 20%. Same-store sales for the April 1 to May 31 period fell 32% in Hong Kong and Macau and were down 28% on the mainland, the company added. 

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

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