Chow Tai Fook Reports 30% Hike in Q1 Sales

By John Jeffay / July 09, 2023 / www.idexonline.com / Article Link

(IDEX Online) - Chow Tai Fook (CTF) today reported an increase of almost 30 per cent in its first quarter retail sales value (RSV), following the end of China's zero-tolerance Covid lockdowns.The recovery was much more pronounced in Hong Kong, Macau and other markets, which account for just over 13 per cent of the company's trade, than it was across the mainland.The RSV increase in mainland China was 25.2 per cent, compared to 64 per cent elsewhere (overall average 29.4 per cent).Growth in same store sales increased by 8.5 per cent on the mainland, and by 64.2 per cent at non-mainland outlets."During 1QFY2024, recovery in general mobility and retail activity in the Mainland and Hong Kong and Macau had a positive impact on the group's business," said the company, which has over 7,000 stores.Demand for gold jewelry remained "resilient", it said, but there had been a four per cent decline in the gem-set, platinum and k-gold jewelry category.CTF indicated it was looking forward to a year of "recovery and normality".It said: "Notwithstanding the ongoing macro headwinds and market uncertainty which are beyond the company's control, the group will stay focused on enhancing operational efficiency and resiliency."In June CTF said it was encouraged by the "gradual resumption of business in our key markets" after the end of zero-tolerance Covid lockdowns and hoped the return of tourists, together with supportive government policies, would drive its recovery.But in an interview vice-chairman Sonia Cheng said the company would be slowing its expansion plans to boost profitability. She said it had opened 1,631 news stores over the last 12 months, but, according to a Bloomberg news report, it was planning to open no more than 600 to 800 in the next year.

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