Chow Tai Fook Sees Strong Growth in China

RAPAPORT... Chow Tai Fook's sales increased in the fourth quarter, amida rise in demand for gold products and stronger consumer sentiment on themainland. Retail sales jumped 24% in mainland China in the threemonths ending March 31, while same-store sales - at branches open for at leastyear - climbed 9%, the jeweler reported last week. Hong Kong and Macau retailsales increased 7% during the period, with same-store sales up 1%. Same-storesales only include shops that Chow Tai Fook operates itself, as opposed tofranchises. Gold-jewelry sales grew 14% on a same-store basis inmainland China, and 3% in Hong Kong and Macau. The improvement reflected ahigher average sales price and an increase in the average weight per goldproduct sold, the company noted. Strong sales of the jewelry retailer's CTF HUAcollection also contributed to the rise. On a same-store basis, sales of gem-set jewelry dropped 10% in Hong Kong and Macau andremained flat in mainland China. Retail sales of the product increased 12% onthe mainland, the company noted. Chow Tai Fook opened 47 new outlets in mainland China andtwo in other regions during the January-to-March period. The retailer operated3,134 locations at the end of the quarter. Image: A Chow Tai Fook store in Sheung Shui, Hong Kong. (Flickr)