Sales at Chow Tai Fook fell in the first fiscal quarter, but less sharply than during the equivalent period last year.
Group retail sales decreased 1.9% year on year for the three months that ended June 30, the Hong Kong-based jeweler reported Tuesday. Sales slid 3.3% in China, though they improved 8% in Hong Kong and Macau. Sales on the mainland comprised 86% of the group’s revenue, while Hong Kong and Macau made up 14%.
Same-store sales — at branches open for at least a year, excluding franchises — declined 3.3% in China. In Hong Kong and Macau, they increased 2.2%. Same-store sales of gold jewelry slipped 1.4% on the mainland and advanced 7% in Hong Kong and Macau. Meanwhile, demand for gem-set jewelry saw a drop of 2.2% in China and a rise of 3.3% in Hong Kong and Macau.
Over the three months, Chow Tai Fook closed a net 311 stores in mainland China, shutting one in Hong Kong and Macau.
“During the quarter, we continued to close underperforming stores while selectively open new stores with higher productivity,” the company commented. “We officially launched the High Jewellery Collection in Hangzhou, China, in June. This launch is pivotal to our brand transformation in elevating our brand’s desirability and signals a new chapter for the group’s leadership in creation and craftsmanship.”
The company will exhibit the new jewelry line in major cities on the mainland and in Hong Kong later this year.
Image: A Chow Tai Fook store in China. (Chow Tai Fook)