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Chow Tai Fook Restores Elusive Sales Growth
Jun 11, 2017 5:21 AM
By Rapaport News
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RAPAPORT... Chow Tai Fook’s sales grew in the second fiscal half amid a recovery in consumer sentiment in Greater China, the retailer reported.
The 4.4% increase to $3.8 billion (HKD 29.72 billion) was the Hong Kong-based jeweler’s first improvement in half-year revenue since 2014, according to Rapaport records. Sales in mainland China grew 7% year on year for the six months that ended March 31, while revenue from Hong Kong and Macau crept up 0.8%, the company said Thursday.
The growth followed a 23.5% slump in group sales during the first fiscal half — which ended September 30, 2016 — amid a market slowdown and a decline in Chinese tourism to Hong Kong. As that decline started reversing in the autumn, the second half was significantly stronger than the first.
Still, full-year sales declined 9% to $6.57
billion (HKD 51.25 billion). Sales in mainland China fell 8% to $4.03 billion (HKD
31.4 billion) for the 12-month period, while revenue from Hong Kong and
Macau slid 10% to $2.88 billion (HKD 22.47 billion). Overall profit increased 6% to $404.1 million (HKD 3.15 billion)
for the year.
The company still has “a long way to a full-fledged recovery for our operations,” Chow Tai Fook chairman Henry Cheng (pictured, middle) cautioned. Even so, mainland China is on track to becoming a “moderately prosperous” society, which is a good sign for the luxury sector in the long term, the retailer pointed out.
The group plans to open as many as 100 stores in China this fiscal year, while closing five unprofitable stores in Hong Kong, Reuters reported.
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Tags:
China, Chow Tai Fook, Hong Kong, macau, mainland china, Rapaport News, retail
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