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Chow Tai Fook 3Q Sales -11% amid Hong Kong Slump

Jan 10, 2016 7:12 AM   By Rapaport News
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RAPAPORT... Chow Tai Fook reported group retail sales dropped 11 percent year on year in the third quarter that ended December 31 as fewer tourists from mainland China visited Hong Kong and on account of weaker local retail sentiment in Hong Kong and Macau.

Same-store sales at the Hong Kong-listed group dived 15 percent in value terms and slid 13 percent on a volume basis, according to a statement January 8. Hong Kong and Macau retail sales suffered the steepest decline, falling 20 percent in total value. Same-store sales in the region plummeted 23 percent by value and 21 percent by volume.

The company said its results look better if measured on the basis of constant foreign-exchange rates, pointing to a 9 percent drop in total group retail sales.

Sliced on the basis of products, the steepest decline was in same-store sales for gold products, which fell 14 percent group-wide as Hong Kong and Macau declined 24 percent and mainland China 3 percent. Same-store sales of gem-set jewelry fell 12 percent across the company, 16 percent in Hong Kong and Macau and 7 percent in mainland China.

Gold products accounted for 56 percent of total revenue, making it the largest product category for Chow Tai Fook, which opened 31 new stores in the quarter under review. It was followed by gem-jewelry jewelry, which made up 28 percent of sales. Platinum and karat-gold products were 12 percent of overall sales and watches 4 percent.
Tags: China, Chow Tai Fook, data, Hong Kong, macau, Rapaport News, results, retail, retail sales
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