Chow Tai Fook Sees Gentle Decline in Sales

Revenue at Hong Kong-based jeweler Chow Tai Fook fell slightly in the first fiscal half as a decline in mainland China outweighed an improvement in the Hong Kong market.

Group revenue decreased 1.1% year on year to HKD 38.99 billion ($5.01 billion) for the six months that ended September 30, the jeweler reported Tuesday. The drop was gentler than for the last fiscal year, when sales fell 18%, as well as for the first half of last year, which saw revenue go down 20%. Profit for the most recent period was flat at HKD 2.57 billion ($329.6 million).

In China, sales dropped 2.5% year on year to HKD 32.19 billion ($4.14 billion).

However, Hong Kong, Macau and other markets recorded 6.5% growth in revenue to HKD 6.79 billion ($873.2 million), “mainly driven by a revival in retail sentiment and foot traffic,” the jeweler explained.

“Tourist demand [in Hong Kong and Macau] remained a key driver of gold jewelry sales, particularly during festive periods such as Labor Day Golden Week, when mainland visitors traveled in large numbers to both regions and made a positive contribution to the retail sector,” Chow Tai Fook added.

Image: A Chow Tai Fook store in Hong Kong. (Shutterstock)