Hong Kong-based jewelry retailer Chow Tai Fook saw a jump in quarterly sales amid stronger consumer sentiment and an increase in gold prices.
Total retail sales leaped 13% in mainland China and grew 11% in Hong Kong and Macau in the fourth fiscal quarter ending March 31, the company reported Monday. Same-store sales — at branches open for two years — increased 7% on the mainland and surged 17% in Hong Kong and Macau.
“[The] Hong Kong and Macau market recorded a relatively stronger growth during the quarter, benefiting from the improving consumer sentiment and reviving mainland visitation,” the retailer explained, referring to an increase in tourist numbers to the hubs.
Same-store sales of gold products rose 14% on the mainland and soared 18% in Hong Kong and Macau, as the average international price of gold grew 9% during the quarter, the jeweler explained. That price increase, combined with customers buying a higher average weight of the metal per product, drove a jump in the average sale price for gold products.
Weak consumer sentiment in the region resulted in a slump in visitors from mainland China to Hong Kong in recent years, damaging retail figures for the municipality. However, the sector has recovered in the past year as the Chinese economy improved and tourism returned. Sales of jewelry, watches, clocks and valuable gifts rose 5% in 2017, and jumped 21% in the first two months of this year, according to Hong Kong’s Census and Statistics Department.
credit: RAPAPORT NEWS