Chow Tai Fook Jewellery Group Limited said that its sales performance in both Mainland China and Hong Kong & Macau markets during the three months ended September 30, 2019 were negatively impacted by the uncertain macro environment and a surge in the international gold price. In Mainland China, sales were up 4% in value terms thanks to new store openings, while in HK & Macau, sales dipped by a massive 35%.

Same store sales growth (SSSG) was negative in both Mainland China and Hong Kong & Macau, the jeweller reported; the former recorded a drop of 7% in value and 21% in volume terms, while in the latter, the tough base of comparison and the situation in Hong Kong, led to a notable decline pf 42% and 44% in value and volume terms.

In Mainland China, the SSSG of gem-set jewellery was flat even as new POS opened in the past 12 months boosted the RSV growth of gem-set jewellery to 12% during the Quarter. The company said that SSS of gem-set jewellery in Hong Kong and Macau decreased by 35% during the Quarter as consumers held back spending.

Average Selling Price (ASP) in Mainland China of gem-set jewellery was up at HK$ 6,400 (2QFY2019: HK$ 6,100) while that of Hong Kong & Macau rose to HK$ 10,800 (2QFY2019: HK$ 9,700), Chow Tai Fook reported.

According to the jeweller, both markets recorded a drop in SSS of gold products (-15% in Mainland China and -49% in HK & Macau) led by a decline in volume. However, ASP of gold products jumped to HK$ 4,900 (2QFY2019: HK$ 3,900) in Mainland China and HK$ 9,200 (2QFY2019: HK$ 8,500) in Hong Kong and Macau during the Quarter. The average international gold price in the Quarter was 21% higher when compared to the same period last year.

The e-commerce business in Mainland China rose 9% year-on-year while volume decreased by 4% in the Quarter, the company stated.

Chow Tai Fook reported that the Group had opened a net of 237 POS in Mainland China during the Quarter, while in Hong Kong, Macau and other markets, the Group opened 5 POS. It stated that as at September 30, 2019, the Group had 3,490 POS in total.

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