CHOW TAI FOOK's retail value in the fourth quarter decreased by 11.6% year-on-year

Zhitong
2025.04.24 09:05
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CHOW TAI FOOK announced that its retail value for the fourth quarter ending March 31, 2025, decreased by 11.6% year-on-year. Among them, the retail value in mainland China fell by 10.4%, while the Hong Kong and Macau markets declined by 20.7%. Despite the impact of macroeconomic factors and high gold prices on consumer willingness, the company's product optimization and Lunar New Year marketing activities drove growth in priced products. Same-store sales in mainland direct-operated stores and franchise stores decreased by 13.2% and 8.7%, respectively. The group closed 395 retail points in mainland China and added 1 retail point in Hong Kong and Macau

According to the Zhitong Finance APP, Chow Tai Fook (01929) announced that the group's retail value for the three months ending March 31, 2025 (fourth quarter) decreased by 11.6% year-on-year. The retail value in mainland China fell by 10.4% year-on-year, while the retail value in Hong Kong, Macau, and other markets declined by 20.7% year-on-year.

In the fourth quarter, external macroeconomic factors and high gold prices continued to affect consumer sentiment. However, the company's product optimization measures during the quarter achieved positive results, driving strong growth momentum and demand for priced products. Additionally, effective marketing activities for the Lunar New Year helped narrow the same-store sales decline in mainland China. During the quarter, same-store sales in mainland direct-operated stores and franchise stores decreased by 13.2% and 8.7% year-on-year, respectively.

The markets in Hong Kong and Macau continued to be impacted by citizens traveling abroad and changes in consumption patterns and preferences of mainland tourists, with same-store sales declines similar to the previous quarter. Same-store sales decreased by 22.5% year-on-year, with same-store sales in Hong Kong down by 21.5%, and Macau down by 25.6%.

The category of gold jewelry and products includes gold products sold by weight and at fixed prices. The average same-store selling price for this product category remained resilient during the quarter. The average selling price in mainland China rose to HKD 6,400 (Q4 of FY2024: HKD 5,600), while the average selling price in Hong Kong and Macau increased to HKD 8,600 (Q4 of FY2024: HKD 7,500).

Despite the uncertain macro environment, benefiting from strong sales of gold-inlaid diamond and other gemstone products, the same-store sales decline for jewelry inlaid, platinum, and K-gold jewelry in mainland China showed a significant narrowing trend. The average selling price of jewelry in mainland China soared to HKD 10,900 (Q4 of FY2024: HKD 8,000), while the average selling price in Hong Kong and Macau reached HKD 16,000 (Q4 of FY2024: HKD 15,800).

During the quarter, the group optimized its retail network, net closing 395 Chow Tai Fook jewelry retail points in mainland China. One retail point was opened in Hong Kong and Macau. In other markets, the group closed three retail points in Japan and Vietnam

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