Chow Tai Fook Jewellery Group is positive about its sales performance over the recent Chinese New Year holiday season.
Retail sales value fell 11 per cent in Hong Kong and Macau, but grew 4 per cent in China. But the topline figures are misleading, the retailer says.
“Same-store sales of gem-set jewellery declined by 20 per cent as Valentine’s Day was not included in the Chinese New Year period this year,” the company said in a statement to the Hong Kong Stock Exchange.
“If a 20-day comparison is applied by stripping out the revenue of Valentine’s Day last year, such same-store sales growth would be positive.”
The sales data covers the period from January 14 to February 3 this year, (the 14 days prior to, and the first seven days of, the holiday season) and has been compared with the corresponding period last year, January 25 to February 14.
“Same-store sales of gem-set jewellery in Hong Kong and Macau was dragged by the decline in average selling price due to some big ticket sales transactions in the corresponding period last year. Yet, same-store sales still recorded positive volume growth of 3 per cent.”
Gem-set volume fell 9 per cent in the mainland.
Sales of gold products rose by 13 per cent in Hong Kong and Macau and by 14 per cent in the mainland.
Across all categories, same-store sales grew by 1 per cent in China and fell by 7 per cent in Hong Kong and Macau.