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Robust Gold Demand Drives Chow Tai Fook Growth

Nov 22, 2017 9:10 AM   By Rapaport News
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Chow Tai Fook’s revenue leapt 15% in the first fiscal half amid rising demand for gold products in Greater China.

Group sales of $3.17 billion (HKD 24.75 billion) for the six months to September 30 included $1.47 billion (HKD 11.52 billion) in gold retail sales — a 20% year-on-year jump, according to figures the Hong Kong-based jeweler released Tuesday. This outweighed a 1.6% drop in retail sales of gem-set jewelry to $635.6 million (HKD 4.97 billion). The company’s other revenue came from its wholesale, trading and services businesses.

Gold demand fueled growth both in mainland China, where same-store sales jumped 10%, and in Hong Kong and Macau, where the increase was 9.5%.

The current fiscal year, ending March 2018, will be a “turning point for our business given the nascent jewelry market recovery” in Hong Kong and China, Chow Tai Fook explained. “Although the recovery is gradual and mild, the industry is expected to return to a stable yet sustainable growth.”

Profit soared 44% to $234.2 million (HKD 1.83 billion), the retailer added.

Image: Sorbis/Shutterstock
Tags: China, Chow Tai Fook, gem-set jewelry, gold, gold products, Greater China, Hong Kong, Jewelry, mainland china, Rapaport News, retail
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