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Hong Kong Growth Boosts Chow Tai Fook

Jul 19, 2018 9:23 AM   By Rapaport News
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RAPAPORT... Chow Tai Fook’s sales grew strongly in the first fiscal quarter due to stronger consumer sentiment in Hong Kong and increased tourism to the municipality from mainland China.

Retail sales jumped 21% in Hong Kong and Macau in the three months ending June 30, while same-store sales — at branches open for at least year — surged 26%, the jeweler reported last week. Mainland retail sales increased 11%, with same-store sales up 4%. Same-store sales only include shops that Chow Tai Fook operates itself, as opposed to franchises.

“[The] Hong Kong and Macau market recorded…impressive growth during the quarter, benefiting from…improving local consumer spending and reviving [tourism from the] mainland,” the company said.

Gem-set jewelry sales leaped 26% on a same-store basis in Hong Kong and Macau, reflecting a higher volume and average sales price. Revenue from those products slipped 4% on the mainland, where gold demand accounted for much of the overall growth. The average international price of the yellow metal rose 4% year on year during the quarter, driving a 31% sales increase for that category in Hong Kong and Macau and an 11% rise in mainland China, the retailer explained. The group did not provide exact sales figures.

Image: Eepfarshr
Tags: Chow Tai Fook, Consumer sentiment, gold, Hong Kong, Jewelry, macau, mainland china, Rapaport News, retail, same-store sales, tourism
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