Chow Tai Fook Sales Rise as China Recovers
Sales at Hong Kong-based jeweler Chow Tai Fook grew 17.5% year on year in the last three months of 2020 as a recovery in mainland China outweighed weakness in its home territory.
“In light of the easing Covid-19 situation in mainland China, business there sustained an encouraging improvement,” the company said in a trading update on Monday. “Challenging macros, the pandemic development and closure of major border crossings still weighed on retail demand in Hong Kong and Macau during the quarter.”
Retail sales on the mainland, including at franchised stores, rose 26% during the third fiscal quarter ending December 31. Same-store sales — at self-operated branches that opened before April 1, 2019 — increased 12%.
However, retail sales in Hong Kong, Macau and other markets dropped 12.5%, with same-store sales down 31%, as reduced tourism continued to hurt the luxury sector.