Chow Tai Fook announced its unaudited key operational data of the group for the three months ended 30 June 2023 indicating positive overall results.
During 1Q FY 2024, recovery in general mobility and retail activity in the Mainland and Hong Kong and Macau had a positive impact on the group's business. Same store sales (SSS) in the Mainland recorded positive growth of 8.5%. With the reopening of the Mainland border, SSS in Hong Kong and Macau increased notably by 64.2% during the Quarter, with Hong Kong showing an increase of 64.9% and Macau up by 62.1%.
Correspondingly, the group's retail sales value (RSV) achieved a growth of 29.4% during the Quarter. Mainland RSV increased 25.2%, while that of Hong Kong and Macau rose 64.0% during the quarter, reaching approximately 76% of the corresponding FY2019 levels.
Demand for gold jewellery and products remained resilient in the first quarter. In the Mainland, the SSS of the gem-set, platinum and k-gold jewellery category declined by 4.1%, while its RSV grew by 8.0% during the quarter. SSS of the product category in Hong Kong and Macau increased by 16.9% during the quarter, driven by healthy volume and price increase.
The group continued to strengthen its product differentiation and optimize its product portfolio. With an expanded gold offering portfolio, the group is able to cater for different consumer segments, effectively capturing emerging growth opportunities and trends.
As part of elevating the group's brand positioning to increase brand desirability and build revenue resiliency, the group centralized its marketing strategy to improve consistency and maximize impact and synergy across all channels.
This complements the group's growth trajectory, building on the verticals of targeted brand positioning and product optimization. To that end, the group will be launching new designs for the HUÁ Collection together with its global campaign launch in mid-July 2023.
The group continues to monitor the fluid market conditions closely and adopt a flexible approach with expansion plans. It stays prepared at all times with the ability to recalibrate its network and resources to capture growth opportunities as they emerge.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
