Chow Tai Fook’s Overall Retail Value Up 12.4%, Demand for Gold Jewelry Surges

4月 18, 2024

On April 12th, Hong Kong’s jewelry giant Chow Tai Fook Jewellery Group Ltd. released its unaudited principal operating data for the fourth quarter of fiscal year 2024, ending March 31st. During the reporting period, Chow Tai Fook’s overall retail value grew by 12.4% year-on-year, compared to the year-on-year increases of 29.4%, 5.8%, and 46.1% in the first three quarters, respectively.

In particular, the Chinese Mainland saw a year-on-year increase of 12.4%, accounting for 88.6% of the group’s retail value; Hong Kong, Macau, and other markets grew by 12.8%, making up 11.4% of the group’s retail value.

As of the close on April 15th (the trading day after the earnings report was released), the group’s share price fell 7.92% to HK$10.46 per share, with a year-to-date decline of about 11.1%, bringing the current market value to approximately HK$104.5 billion.

The group stated that Mainland China, Hong Kong, and Macau benefited from strong festive demand. However, due to a high comparative base, same-store sales in Mainland China decreased by 2.7% year-on-year, and same-store sales volume dropped by 6.9%. In terms of product segmentation in same-store sales, sales of gem-set jewelry, platinum, and K-gold jewelry decreased by 19.5%, while gold jewelry and products increased by 3.4%. In Hong Kong and Macau, the continuous recovery of inbound tourism supported business, with same-store sales growing by 4.5%, including an 8.9% increase in Hong Kong and a 7.1% decrease in Macau.

Regarding the Chinese Mainland:

  • Gem-set, platinum, and K-gold jewelry, along with gold jewelry and products, contributed 12.4% and 84.8% to retail value, respectively.
  • The retail value of Chow Tai Fook’s franchised stores increased by 18.3% during the quarter, primarily due to new store openings in the past 12 months and overall store performance improvement, with their contribution to the Chinese Mainland’s related retail value expanding to 70.4% (from 67.2% in the fourth quarter of fiscal 2023).
  • E-commerce accounted for 3.9% of the Chinese Mainland’s retail value, with a sales volume share of 10.4%.

For Hong Kong, Macau, and other markets:

  • Gem-set, platinum, and K-gold jewelry, along with gold jewelry and products, contributed 14.0% and 81.0% to retail value, respectively.

Regarding retail points, as of March 31st, Chow Tai Fook Jewellery had 7,548 retail points, a net decrease of 88 from the end of the previous fiscal quarter, including 7,403 in the Chinese Mainland, a net decrease of 89. Other brands had 234 retail points, including 224 in the Chinese Mainland.

 | Source: Official Financial Report

 | Image Credit: Group Official Website

丨Reporter:Wang Jiaqi

 | Editor: LeZhi