Mainland China helps Chow Tai Fook figures
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Chow Tai Fook Jewellery Group has reported a four per cent year-on-year increase in retail sales in the three months to September 30.
The welcome increase was attributed to surge in demand for gold as a result of falling gold commodity price since mid July.
The Hong Kong listed company says same store sales fell three per cent in value terms and rose one per cent in volume terms.
Mainland China stores led the growth, with Hong Kong and Macau shops showing a same store decline of 13 per cent and an overall decline of five per cent. Volume fell 18 per cent.
But in China, same store sales rose six per cent in value and 13 per cent in volume.
Chow Tai Fook described the Hong Kong and Macau retail market as “continuing lacklustre”.
Sales of gem-set jewellery there fell 24 per cent on a same store basis, but just four per cent in the mainland.
Questions & Answers
Q.What is the primary reason given for the overall increase in Chow Tai Fook's retail sales?
What is the primary reason given for the overall increase in Chow Tai Fook's retail sales?
The welcome increase in retail sales was attributed to a surge in demand for gold. This demand was stimulated by a fall in the gold commodity price, which began in mid-July.
Q.How did same-store sales perform in Mainland China compared to Hong Kong and Macau?
How did same-store sales perform in Mainland China compared to Hong Kong and Macau?
Mainland China stores saw a six per cent rise in value and a 13 per cent increase in volume for same-store sales. In contrast, Hong Kong and Macau shops experienced a 13 per cent same-store decline and an 18 per cent volume fall.
Q.What was the difference in performance for gem-set jewellery sales between Mainland China and Hong Kong/Macau?
What was the difference in performance for gem-set jewellery sales between Mainland China and Hong Kong/Macau?
Sales of gem-set jewellery in Hong Kong and Macau fell 24 per cent on a same-store basis. However, in Mainland China, the decline for gem-set jewellery was significantly less, at just four per cent.