Hong Kong-listed jeweller Chow Tai Fook is reaping the benefits of an expansion program on China’s mainland.
During the three months to September 30, the company’s total sales rose by 2.6 per cent despite a 51.6-per-cent decline in its once core Hong Kong and Macau market.
In Mainland China, which contributed 87.9 per cent of the group’s total turnover for the quarter, sales increased by 21.2 per cent
Same-store sales on the mainland rose by 11 per cent, underscoring the benefits of the company’s expansion in the market, where it opened 261 new points of sale during the quarter. The retailer now has 4153 points of sale including franchised outlets and company-owned stores. In Hong Kong it closed two stores during the period.
“In light of the easing Covid-19 situation in Mainland China, business … showed an encouraging improvement and same-store sales rebounded,” said Chow Tai Fook chairman Dr Henry Cheng Kar-Shun in a stock-exchange filing.
“Challenging macros and the closure of key border crossings weighed on the retail demand in Hong Kong and Macau during the quarter, yet same-store sales decline in Hong Kong and Macau narrowed to 46.4 per cent and 74.6 per cent, respectively, thanks to a lower base of comparison.”