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Chow Tai Fook Sales Signal China Recovery
Jan 10, 2017 5:22 AM
By Rapaport News
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RAPAPORT... Chow Tai Fook’s shares jumped more than 5 percent after the jeweler reported relatively strong quarterly sales amid renewed growth in China and higher gold demand.
Retail sales in mainland China increased 7 percent in the third fiscal quarter that ended December 31, while same-store
sales advanced 4 percent, the Hong Kong-based retailer reported. Revenue from Hong Kong
and Macau fell 6 percent with same-store sales down 2 percent.
Same-store sales of gold rose 7 percent in mainland China and 8
percent in Hong Kong and Macau amid a 10 percent year-on-year jump in the yellow
metal’s price. Same-store sales of gem-set jewelry slipped 4 percent in mainland China and
slumped 17 percent in Hong Kong and Macau.
The quarterly update, which excluded sales totals, signals a turnaround from the double-digit declines the jeweler reported in the past two years when it was hit by a slowdown in China's economy and fewer tourist arrivals in Hong Kong.
Chow Tai Fook pointed to “stabilizing fundamentals and a relatively low base of comparison” and said the improving trend was in line with the group’s expectations.
Correction, January 11, 2017: Chow Tai Fook's third-quarter gold and gem-set jewelry sales figures are same-store sales and not total sales.
Image: Kevin Utting
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Tags:
China, Chow Tai Fook, gem-set jewelry, gold, Hong Kong, macau, mainland china, Rapaport News, tourism, tourist arrivals
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