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RAPAPORT... Chow Tai Fook Jewellery Group reported a 4 percent year-on-year
increase in retail sales for its overall business in the three months to
September 30, attributing the growth to a surge in demand for gold products
amid a drop in the metal’s price since mid-July.
The Chinese retailer’s same-store sales for the second
fiscal quarter fell 3 percent in value terms and rose 1 percent in volume
terms, the companies said in a statement. It did not disclose figures beyond
the percentage changes.
The company’s strongest growth figures were in Mainland
China, where sales were up 9 percent in value and 13 percent in same-store
volume, while same-store sales jumped 6 percent.
Hong Kong and Macau results were worse, with the value of
sales slipping 5 percent and same-store revenue plunging 13 percent. The volume
of same-store sales tumbled 18 percent. A company statement said that while sales
of gold products in Hong Kong and Macau were up 4 percent, the “continuing lackluster
retail market sentiment” resulted in “weak” same-store sales performance. Same-store
gem-set jewelry sales in the region saw a 24 percent slide.
Gem-set jewelry sales in the overall business were down 13
percent, including a 4 percent drop in Mainland China. Gold products fared
better in both regions, with same-store sales in Mainland China rising 22
percent. Gold products made up 57 percent of the company’s total retail sales
value, compared with 26 percent from gem-set jewelry, 13 percent from platinum
and karat gold products and 4 percent from watches. The group said the gold
figure was 8 percentage points higher than the same period last year.
It also said the company had opened a net of 16 points of
sale during the period, comprised of 14 in Mainland China and two in Hong Kong,
Macau and other markets, bringing its total number of points of sale to 2,286 on
September 30.
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