Chinese Recovery Spurs Chow Tai Fook Growth

RAPAPORT... Chow Tai Fook's sales and profit rose during the fiscalyear, amid a recovering Chinese market and increased tourism to Hong Kong,the retailer said Thursday. Group sales grew 15% to $7.54 billion (HKD 59.16 billion)for the year that ended March 31. Retail sales in mainland China jumped 16% to $3.58billion (HKD 28.1 billion), while revenue from Hong Kong and Macau climbed 7%to $2.63 billion (HKD 20.63 billion). The company also operates a wholesalebusiness, which accounted for 18% of overall revenue. Net profit soared 33% to $535.7 million (HK 4.2 billion) forthe year, the company reported. "We...have enjoyed a year of recovery, with resilient businessperformance seen in both mainland China and Hong Kong and Macau," the companysaid. "Against the backdrop of the shifting retail landscape, we remainconfident in the prospects of the greater China jewelry market in fiscal year2019 and beyond." Same-store sales in mainland China - for outlets open more than a year - increased8% for the period, while those in Hong Kong and Macau rose 10%.Group sales of gem-set jewelry rose 5% to $1.49 billion (HKD11.66 billion) for the year, while revenue from gold surged 15% to $3.59billion (HKD 28.16 billion). During the year, the retailer added a net 204 new outlets,primarily in mainland China, and had 2,585 points of sale as at March 31.