Chow Tai Fook Reports Strong Q1 Growth In Mainland China
The Hong Kong-based Chow Tai Fook Jewellery Group said retail sales value grew 17 percent, while same store sales grew 11 in mainland China during the the three months ended June 30, the first quarter of the current financial year.
Retail sales value grew 7 percent, while same store sales grew 5 percent in Hong Kong and Macau during the period.
The company said the same store sales performance of gold products in both markets improved mainly due to an increase in the average selling price. The average selling price in mainland China grew from $384 (HK$3,000) in Q1 2016 to $461 (HK$3,600) in this year’s first quarter in a year-on-year comparison.
In Hong Kong and Macau, in a similar comparison, the average sale price grew from $871 (HK$6,800) to $909 (HK$7,100). The increase 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 same store sales, gold products grew 16 percent in mainland China and 9 percent in Hong Kong and Macau. Gem-set jewellery grew 3 percent on the mainland but declined 4 percent in Hong Kong and Macau.
According to the company, the same store sales increase in gem-set jewellery in mainland China was driven by an increase in both volume and average sales price during the quarter. The decline in same store sales of gem-set jewellery in Hong Kong and Macau narrowed to a single digit, as volume resumed to a double-digit growth.