China’s Chow Tai Fook Jewellery Group Limited released certain unaudited key operational data for the three months ended 30 June 2019, reporting that same store sales (SSS) grew by 11% in Mainland China, but fell by 11% in Hong Kong & Macau. The jeweller said that sales in the latter market were impacted by a tough base of comparison and cautious consumer sentiment amid an uncertain macro-environment.

Overall retail growth in Mainland China was 24%, the jeweller said, largely driven by the addition of 115 POS in the country. In volume terms, SSS growth declined 3%. Value of gem-set jewellery in the Mainland was up 8%, while it rose by 12% in the case of gold products. The latter figure was attributable to the increase in average weight per gold product sold, the Company said.

The increased contribution from new POS also played its part in boosting the RSV growth of gem-set jewellery in the Mainland to 18%. Same store Average Selling Price of gem-set jewellery was HK$ 6,200 (1QFY2019: HK$ 6,500) 

In Hong Kong and Macau, SSS of gem-set jewellery decreased by 16% during the quarter as consumers held back spending. Same store Average Selling Price (ASP) of gem-set jewellery was HK$ 10,100 (1QFY2019: HK$ 11,000).

ASP of gold products jumped to HK$ 4,800 (1QFY2019: HK$ 3,900) in Mainland China and HK$ 8,600 (1QFY2019: HK$ 7,900) in Hong Kong and Macau during the quarter. The average international gold price during this period was flattish when compared to the same period last year.

While the RSV of e-commerce business in Mainland China rose 11% year-on-year and volume increased by 6% in the first quarter, the contribution of Mainland tourists to sales in HK & Macau declined to 44% (1QFY2019: 48%).

The Group opened a net of 115 POS in Mainland China during the Quarter, including a net opening of 113 Chow Tai Fook Jewellery POS in which 18 are self-operated and 95 are franchised. Three Chow Tai Fook Jewellery POS were opened in Singapore, Korea and the Philippines. As at 30 June 2019, the Group had 3,248 POS in total.