Chow Tai Fook Rides "Year of Recovery" to Sales & Profit Gains in FY 2018

Retail and Consumer Confidence
14/06/2018 13:37

Calling financial year 2018 a "year of recovery", leading jewelry retail group Chow Tai Fook, a bellweather for China's jewelry landscape, reaped the benefits of the retail market in Greater China regaining its upward momentum, leading to a vibrant performance for the group. Chow Tai Fook’s sales and profit rose during the fiscal year in the rising Chinese market, with the retail sector also noting increased tourism to Hong Kong as having a positive impact on sales. Chow Tai Fook's sales grew more than 15% to US$7.54 billion (HK$59.16 billion) for the year ended March 31, leading to a 34% rise in profit attributable to shareholders to US$535.7 million (HK$4.1 billion ... FY2017: HK$3.1 billion).

Retail sales in Mainland China jumped 16% to $3.58 bn, while revenue from Hong Kong and Macau rose 7% to $2.63 bn. Driven by average selling price as well as volume growth in both markets, same-store sales growh (SSSG) in mainland China increased 8% for the period, while those in Hong Kong and Macau rose 10%. Including e-commerce business, Mainland China SSSG would be 10.8%Group sales of gem-set jewelry rose 5% to $1.49 bn for the year, while revenue from gold surged 15% to $3.59 bn. 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.  .

The Group commented, "FY2018 was a year of recovery with resilient business performance seen in both Mainland China and Hong Kong and Macau. On the back of the shifting retail landscape, the Group remains confident in the prospects of the Greater China jewellery market in FY2019 and beyond." Chow Tai Fook Chairman Dr. Henry Cheng remarked, “Chow Tai Fook is proudly approaching the 90th anniversary. We will, as always, continue to uphold our leading edges to bring our business to fruition by meticulously executing our “Smart+ 2020” strategic framework. We believe that the customer-centric approach fortified with our iconic and trusted brand value would further solidify our status as the industry leader.” The “Smart+ 2020” three-year strategic work plan launched in FY2018 to delivering seamless experiences to customers in the long-term.