Chow Tai Fook (CTF) Jewellery Group Limited recently announced its unaudited key operational data of the Group for the three months ended September 30, 2018.  The Group saw growth in almost all segments  in both, Mainland China and the Hong Kong (HK) and Macau markets, except for the gem set jewellery category, which was down in HK & Macau, and Same Store Sales (SSS) volume growth which was negative in Mainland China.

While the value of retail sales  in the second quarter  grew by 15% in Mainland China, they increased by 25% in HK and Macau y-o-y.

CTF’s  SSS  grew 6% in Mainland China and 23% in HK & Macau for the period as compared with the second quarter of the previous year. 

However, while SSS volume growth for the period decreased by 2% in Mainland China; it saw an increase of  13% increase in HK & Macau, y-o-y.

Looking at SSS by product category,  CTF saw gem-set jewellery grow by merely 1% in Mainland China, and actually dip by 2% in HK & Macau. Gold products on the other hand registered  double digit growth of 11% in Mainland China and a whopping 41% in HK & Macau.

In Mainland China, CTF added, SSSG, inclusive of e-commerce business, was 5% with a flattish volume growth.

“In Mainland China, SSSG of gem-set jewellery returned to positive at 1% and its respective RSV growth recorded an encouraging growth at 12%,” said CTF. Same store Average Selling Price (ASP) remained at HK$ 6,400 (2QFY2018: HK$ 6,400). In Hong Kong and Macau, the decline in SSSG of gem-set jewellery was due to a relatively stronger high-end luxury jewellery sales recorded in the same period last year that dragged the ASP to HK$ 9,700 (2QFY2018: HK$ 10,700) during the Quarter. Yet, same store volume growth stayed positive.”

The SSS performance of gold products in both markets was driven by the increase in weight per piece sold, CTF noted. “Same store ASP was HK$4,000 (2QFY2018: HK$3,600) in Mainland China while HK$8,500 (2QFY2018: HK$7,100) in Hong Kong and Macau during the Quarter,” CTF noted. “The average international gold price in the Quarter declined by 5% when compared to the same period last year.”

The RSV of e-commerce business in Mainland China grew at 2% year-on-year accompanied by a volume increase of 8% in the Second Quarter, CTF reported.

The Group opened a net of 162 POS in Mainland China during the Quarter, which included a net opening of 158 Chow Tai Fook Jewellery POS, three  SOINLOVE POS and one CHOW TAI FOOK T MARK POS. While in Hong Kong, Macau and other markets, the Group opened one Hearts On Fire POS and closed two  CTF Watch POS in Hong Kong, and opened one Chow Tai Fook Jewellery POS in Korea. As at   September, 30 2018, the Group had 2,822 POS in total, CTF reported.