Jul 14, 2017

Chow Tai Fook’s Sales on the Uptrend in Q1 FY2018

Chow Tai Fook Jewellery Group Limited’s sales for the three months ended 30 June 2017 (Q1 FY2018) show that the Company enjoyed growth across most segments and in both,   Mainland China and the Hong Kong and Macau regions.

The Company’s Retail Sales Value (RSV) for the period grew by 17% y-o-y for Mainland China and by 7% for Hong Kong and Macau.  While Same Store Sales (SSS) were up 11% for the period y-o-y in Mainland China, they were up by 5% in Hong Kong and Macau; and while the former experienced no growth in Same Store Sales Volume, the latter saw a growth of 7%  in this category in Q1 FY2018 as compared to the same period of the previous year.

“SSS performance of gold products in both markets improved mainly due to an increase in Average Selling Price (ASP),” the Company elaborated “Same store ASP was HK$ 3,600 (Q1 FY2017: HK$3,000) in Mainland China while HK$7,100 (1QFY2017: HK$6,800) in Hong Kong and Macau in the Quarter. The increase in ASP was primarily attributable to the gain in the average weight per gold product sold. The average international gold price stayed flat when compared to same period last year.”

In terms of product segments, gold products saw a growth of 16% for the period y-o-y in Mainland China and 9% in Hong Kong and Macau. However, while gemset jewellery saw an increased offtake of 3% in Mainland China, the segment witnessed a fall of 4% for Hong Kong and Macau.

“Decline in SSS of gem-set jewellery in Hong Kong and Macau narrowed to a single digit as volume resumed to a double-digit growth,” the Company elaborated.  

Chow Tai Fook’s jewellery e-commerce business in Mainland China remained robust and “continued to boost the RSV with a 140% year-on-year growth in the First Quarter, backed by a strong volume increase of 125%”, the Company reported. The Company attributed this, in part at least, to the diversion of low ASP gold products to this channel, with the outcome of also “partially contributing to an improvement in same store ASP of gold products in self-operated stores”.

“The Group opened a net of 28 POS during the Quarter, which included a net opening of 29 POS in Mainland China, 2 POS in Japan and 1 POS in the United States and a net closing of 4 POS in Hong Kong, bringing the total number of POS to 2,409 as at 30 June 2017,” the Company summarised in conclusion.