After the market closed on July 23, Chow Tai Fook Jewellery Group Ltd., a leading jewelry giant in Hong Kong, released its unaudited key operating data for the first quarter of FY2025 ending June 30. During the reporting period, Chow Tai Fook’s overall retail value declined by 20.0% year-on-year.
In the Chinese Mainland, retail value fell by 18.6%, accounting for 87.8% of the group’s retail value. In Hong Kong, Macau, and other markets, the retail value decreased by 28.8%, representing 12.2% of the group’s retail value.
As of the market close on July 24 (the trading day after the financial report was released), the group’s stock price fell by 6.57% to HKD 7.39 per share, down approximately 57.2% year-to-date, with a current market capitalization of about HKD 72.7 billion.
The group stated that during the reporting period, the macroeconomic environment continued to impact consumer spending, leading to a decline in same-store sales in the Chinese Mainland, Hong Kong, and Macau. Additionally, high gold prices affected the demand for gold jewelry, reflecting a trend observed across the industry.
During the reporting period, same-store sales for directly-operated and franchised stores in the Mainland declined by 26.4% and 19.1%, respectively. In Hong Kong and Macau, same-store sales fell by 30.8%, with Hong Kong declining by 27.4% and Macau by 41.3%.
Gold jewelry and products, sold by weight or at fixed prices, showed resilience in average selling prices during the quarter. The average selling price in the Mainland increased to HKD 6,200 (Q1 FY2024: HKD 5,400), while in Hong Kong and Macau, it rose to HKD 8,900 (Q1 FY2024: HKD 8,400).
Jewelry sets, classified as non-essential goods, were more affected by the current market conditions. However, the average selling price of jewelry sets in the Mainland rose to HKD 8,600 (Q1 FY2024: HKD 7,800), while in Hong Kong and Macau, it was HKD 16,400 (Q1 FY2024: HKD 16,700).
In the Chinese Mainland:
- Jewelry sets, platinum, and K-gold jewelry, as well as gold jewelry and products, contributed 18.1% and 76.9% to the retail value, respectively.
- Retail value from franchised stores in the Mainland declined by 16.3%, outperforming directly-operated stores, with their contribution to the Mainland’s retail value expanding to 71.4% (Q1 FY2024: 68.1%).
- E-commerce contributed 8% to the Mainland’s retail value, with a sales volume share of 13.8%.
In Hong Kong, Macau, and other markets:
- Jewelry sets, platinum, and K-gold jewelry, as well as gold jewelry and products, contributed 18.6% and 74.0% to the retail value, respectively.
Regarding retail points, as of June 30, Chow Tai Fook had a total of 7,429 retail points, a net decrease of 91 from the end of the previous quarter. Of these, the Chinese Mainland had 7,284 retail points, a net decrease of 91. Other brands had 230 retail points, with the Chinese Mainland accounting for 220, a net decrease of 4.
| Source: Official Financial Report
| Image Source: Official Website
| Editor: LeZhi
