Jeweller Chow Tai Fook expects trading to remain challenging in next months after reporting a fall in same-store sales.

The jeweller third quarter same-store sales dropped eight per cent as Chinese consumers curbed spending. Sales in the mainland declined 11 per cent and six per cent in Hong Kong and Macau in the three months to December.

The company said revenue grew only three per cent during the period.

“The slowing economy has affected consumers’ confidence. And the impact on mainland jewellery sales emerged around three to four months later than in Hong Kong and Macau,” said MD Kent Wong Siu-kei.

While the company has witnessed some rebound in Hong Kong and Macau, it expects mainland market to remain weak.

“Chow Tai Fook is the market leader in the long term. However, the current aggressive store expansion along with weak gold sales in China remain potential concern,” observed Terence Lok, an analyst at Oriental Patron.

During the three months, the jeweller opened 70 stores, most of which were on the mainland, taking its store count to 1802.

GB