Chow Tai Fook sales slump 10%
Hong Kong’s weakening luxury sales market saw jeweller Chow Tai Fook’s retail sales fall 10 per cent in the third quarter.
Compared to the same period last year, the group’s same store sales of gem-set jewellery fell 12 per cent and of gold products by 21 per cent, although this was coming off the ‘gold rush’ which saw significant volumes of gold being traded in the preceding year.
“The decrease in the same store sales growth of gem-set jewellery was mainly due to the weak consumer sentiment for high-end jewellery in Hong Kong and Macau,” the company said in a statement.
The contribution of gem-set jewellery and gold products to the group’s total retail sales volume in the three months to December 31 were 27 per cent and 56 per cent, respectively, and for the first half of 2015 28 per cent and 49 per cent.
The company released sales data expressed only in percentage terms, not by dollar value.
The group opened a net of 52 points of sale during the quarter, which included a net opening of 56 Jewellery stores (comprising the first Hearts On Fire standalone store in Shanghai) and a net closing of five watch stores in Mainland China. The total number of stores stood at 2243 on December 31.