Chow Tai Fook sales down 1.9pc as mainland retail slips

Chow Tai Fook Jewellery (1929) reported a 1.9 percent year-on-year decline in retail sales value for the quarter that ended in June, as gains in Hong Kong, Macau and other markets were outweighed by a continued slowdown in mainland China, according to an exchange filing on Tuesday.

Mainland China, which contributed 86.4 percent of the group’s retail sales during the quarter, saw a 3.3 percent drop in retail sales value. In contrast, sales in Hong Kong, Macau, and other markets, which made up the remaining 13.6 percent, rose 7.8 percent.

Same-store sales in Hong Kong and Macau increased 2.2 percent, with Hong Kong up 0.2 percent and Macau up 9.5 percent. In the mainland, same-store sales at self-operated stores declined 3.3 percent, though the pace of decline narrowed, and franchised stores recorded flat growth.

The company said it net closed 311 Chow Tai Fook stores in mainland China during the quarter, and net opened one new outlet in Hong Kong and Macau as part of efforts to optimize its retail network.

STAFF REPORTER