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Chow Tai Fook Growth Slows as Pandemic Resurges
Apr 14, 2022 9:36 AM
By Rapaport News
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RAPAPORT... Chow Tai Fook saw sales momentum weaken in the fourth fiscal quarter as the latest surge of Covid-19 infections impacted retail in China and Hong Kong.
The jeweler’s retail sales value climbed 8.5% year on year for the three months that ended March 31, but that was a sharp drop from the 31% growth it had registered in the previous quarter. Revenue rose nearly 12% on the mainland, but fell 21% in Hong Kong, Macau and other markets, the company reported in a trading update on Wednesday.
“Business was negatively impacted by the new wave of the pandemic in Hong Kong,” it said.
Same-store sales — a comparison of stores open over the past year — declined 11% on the mainland as the new coronavirus wave spread in March; the figure had been flat for the first two months of 2022. Hong Kong and Macau witnessed an even bigger slide of 22%, Chow Tai Fook reported.
By product category, same-store sales of gold items — including jewelry — fell 13% in China and 8% in Hong Kong and Macau. Same-store sales of gem-set jewelry and similar goods edged down 0.4% on the mainland and plunged 43% in Hong Kong and Macau.
During the period, Chow Tai Fook opened a net 255 points of sale in China, and one in other markets. The group had a total of 5,902 stores in operation as of March 31.
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Tags:
Chow Tai Fook, diamonds, Hong Kong, Jewelry, mainland china, Rapaport News
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