Chow Tai Fook (1929) forecasts its net profit for the six months ended September 30 to surge 90 to100 percent year-on-year due to a fair value gain on gold loan contracts versus a loss year earlier and stronger sales in key markets.
Retail value fell 0.5 percent year-on-year for the three months ended September 30, with Hong Kong, Macau and other markets rising 33.2 percent and the Chinese mainland market, accounting for 83 percent of total retail value, down 5.3 percent mainly due to network optimization, the jeweler said.
Same store sales of self-operated stores edged up 2.2 percent during the quarter, while that of franchised stores dipped 2.9 percent. In Hong Kong and Macau, same store sales grew 29.6 percent, supported by robust consumption sentiment and customer traffic.
Average selling prices for weight-based gold jewellery remained firm in the quarter. The mainland's reading rose to HK$10,200 from HK$9,500 a year earlier, while that for Hong Kong and Macau eased to HK$15,400 from HK$16,800, it added.
Chow Tai Fook opened 23 jewellery points of sale on the mainland and closed 263, and net opened one jewellery store in Hong Kong, Macau and other markets during the quarter.
Frank Feng
