Chow Tai Fook China Expansion Spurs Growth

RAPAPORT... Chow Tai Fook reported a sharp rise in gem-set-jewelry sales in Hong Kong, while expansion in mainland China helped drive growth in its fiscal third quarter, as the local retailsector continued to improve.Overal retail sales grew 12% in the mainland and were flat in Hong Kong, the company reported Tuesday. However, same-store sales at branches open for at least one year increase 5% in both regions. The company has accelerated its expansion program recently after exerting greater caution during the region's downturn in 2015 and 2016. It opened a net 77 stores during the three months that ended December 31, of which 74 were in China and three in Hong Kong. Same-store sales for gem-set jewelry leapt 22% in Hong Kong and Macauin the quarter, while the measure for gold products there fell 1%. In mainland China, same-store sales of gem-set jewelry slipped 1%, but gold grew 8%. Last week, Hong Kong's Census and Statistics Departmentnoted an 8% increase in sales of jewelry, watches and other valuable items inNovember, as consumer sentiment improved.Image: Wpcpey