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Chow Tai Fook's 2Q Revenue +35%
Oct 20, 2013 5:28 AM
By Deena Taylor
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RAPAPORT... Chow Tai Fook reported that group revenue grew 35 percent year on year in the second fiscal quarter that ended on September 30. Without providing hard totals, the retailer cited strong growth in the sale of gold products and improved wholesale revenue. Group sales in Mainland China rose 33 percent and jumped by 38 percent in Hong Kong and Macau.
Group same-store sales during the quarter increased 18 percent year on year, with China up 12 percent and Hong Kong and Macau rising 26 percent. Chow Tai Fook reported that same-store sales growth of gem-set jewelry rose 4 percent, while gold product same-store sales grew by 33 percent, driven mainly by a notable volume increase for luxury jewelry. The group anticipates that its mass luxury jewelry segment will continue to be a major growth driver.
Chow Tai Fook noted that it improved its product mix during the period as the gold buying spree faded. The company also improved its gross profit margin as sales contribution of gold products to the group’s total revenue normalized to 59 percent compared with 69 percent during the previous quarter. Sales of gem-set jewelry contributed 22 percent to the group's overall revenue.
Chow Tai Fook opened 98 new points of sale in the second quarter, including two in Hong Kong, Macau and Taiwan and 96 in Mainland China. The company had 1,954 points of sale as of September 30.
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Tags:
Chow Tai Fook, Deena Taylor, diamonds, gold
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