Chow Tai Fook Jewellery Posts 46.1% Growth in Retail Sales Value In
3QFY2024, Driven by Steady Progress of Ongoing Transformation
EQS Newswire / 12/01/2024 / 17:11 UTC+8
Chow Tai Fook Jewellery Posts 46.1% Growth in Retail Sales Value
In 3QFY2024, Driven by Steady Progress of Ongoing Transformation
Results Highlights
* The Group's Retail Sales Value ("RSV") registered growth of
46.1% during 3QFY2024. This was driven by Hong Kong and Macau
of China and other markets which was up 70.8%, thanks to the
continued recovery of inbound tourism and our annual sale in
December. Mainland China (the "Mainland") RSV increased by
42.2%, supported by the strong festive demand and a steady
ramp up of our new stores.
* In Hong Kong and Macau, with an average daily customer
traffic increased by over 50% year-on-year, Same Store Sales
("SSS") increased 66.6% during the Quarter. In Mainland
China, SSS increased by 22.7% during the Quarter and almost
50% in December.
* Bolstered by our global diamond campaigns and annual sale,
RSV of Wonderful Life Collection in the Mainland was double
that of 3QFY2023. Our newly launched
Chow Tai Fook Dancing Lily Collection was also well received
by our customers in both the Mainland and Hong Kong and
Macau.
* Strength in gold products continued given its nature of value
preservation and defensiveness and increasing popularity
among younger consumers. Some of our key and exclusive
collections such as HUÁ Collection and ING Collection
captured robust market demand, registering RSV growth in
excess of 50% and 40% respectively during the Quarter.
* Since November, we have progressively rolled out the change
from weight-based pricing to fixed pricing for selective gold
jewellery products. We have observed positive and encouraging
responses from the market with strong growth recorded in
December.
* As we transition to a new phase of higher value growth and
with our brand revamp set to be unveiled in April 2024, our
focus remains steadfast on executing our five strategic
priorities to drive a sustained enhancement in earnings
quality.
KEY OPERATIONAL DATA
For the three months ended 31 December 2023
(% change compared to the same period last year)
Group
Retail Sales Value(1) growth
+46.1%
Mainland
China
Hong Kong &
Macau of China and
other markets
RSV growth
+42.2%
+70.8%
Contribution to Group RSV
84.2%
15.8%
Mainland
China
Hong Kong &
Macau of China
Same Store Sales(2) growth
+22.7%
+66.6%
SSS volume growth
+17.5%
+49.8%
SSSG by product
- Gem-set, Platinum and K-gold jewellery
-1.9%
+4.3%
- Gold jewellery and products
+32.5%
+104.3%
(1) "Retail Sales Value" measures the sales at the ending price
(VAT inclusive, if any), in respective functional currencies, of
products sold to customers in the POS network and other channels.
(2) "Same Store Sales" for the Third Quarter is the RSV from the
self-operated POS of
CHOW TAI FOOK JEWELLERY existing as at 31 December 2023 and which
have been opened prior to 1 April 2022. RSV from franchised POS
and other channels are not included.
(Hong Kong, China, 12 January 2024) Chow Tai Fook Jewellery Group
Limited ("Chow Tai Fook Jewellery Group", the "Group" or the
"Company"; SEHK stock code: 1929), today announces certain
unaudited key operational data of the Group for the three months
ended 31 December 2023 (the "Third Quarter", or the "Quarter" or
"3QFY2024").
Robust RSV and SSS Growth Driven by Festive Demand
During 3QFY2024, both Mainland China and Hong Kong and Macau
benefitted from strong festive demand. The Group's RSV registered
a robust growth of 46.1% during the Quarter. This was driven by
Hong Kong and Macau of China and other markets, which was up
70.8%, thanks to the continued recovery of inbound tourism and
our annual sale in December. For the first nine months of FY2024,
our RSV in Hong Kong and Macau was about 70% of the corresponding
FY2019 levels.
In Mainland China, the annual sale also commenced in late
December to capture growth momentum ahead of the Chinese New Year
celebrations. During the Quarter, RSV of the Mainland increased
by 42.2%, supported by the strong festive demand. In particular,
on Christmas Eve and Christmas Day, RSV in the Mainland more than
doubled year-on-year.
In other markets, an increase in tourism also drove robust RSV
growth of 168.6%, especially for Singapore, Malaysia, and
duty-free shops in the Mainland. We will continue to evaluate and
explore opportunities in markets with strong retail demand.
The Same Store Sales Growth ("SSSG") in both markets demonstrated
a positive trend. In the Mainland, SSS recorded growth of 22.7%
during the Quarter. In particular, SSSG reached almost 50% in
December, with positive SSSG observed across all product
categories. In Hong Kong and Macau, the continued recovery of
inbound tourism and our annual sale were supportive to our
business and SSS increased by 66.6%. SSSG grew by 58.8% and
100.7% for Hong Kong and Macau respectively. The encouraging
growth was supported by the sustained return of Mainland
tourists, coupled with our annual sale during the Quarter. The
average daily customer traffic at our stores in Hong Kong and
Macau increased by over 50% year-on-year during the Quarter.
We continued to enhance digital customer engagement and bolster
our online presence through targeted digital marketing
initiatives. E-commerce's contribution in Mainland China edged up
to 6.4% in RSV and 14.3% in volume in the Quarter.
Encouraging Performance of our Featured Diamond Collections
For our gem-set business, we kicked off our global diamond
campaign in September 2023 with a positive reception. We brought
the "Beyond Time" diamond exhibition to Beijing in December,
following its successful debut in Hong Kong. These diamond
campaigns were designed and aimed at effectively raising
consumers' awareness and enhancing their desirability for gem-set
jewellery.
Quality gem-set jewellery continued to be favoured by consumers,
as illustrated by the strong performance of the Wonderful Life
Collection in the Mainland, which doubled its RSV in 3QFY2023
year-on-year. Our newly launched Chow Tai Fook Dancing Lily
Collection was well received by our customers in the Mainland and
Hong Kong and Macau. These underpinned our confidence in the
long-term prospects of diamond jewellery.
In the Mainland, SSS of the gem-set, platinum and k-gold
jewellery category slightly declined by 1.9% during the Quarter
yet on a monthly basis, it turned positive since November.
Mainland RSV for this category grew 7.0% during the Quarter. In
Hong Kong and Macau, SSS increased by 4.3% during the Quarter. In
the Mainland, the Same Store Average Selling Price ("ASP") of
gem-set jewellery was steady at HK$8,100 (3QFY2023: HK$8,200),
while that of Hong Kong and Macau increased to HK$17,400
(3QFY2023: HK$15,100).
Sustained Momentum of Consumer Spending on Gold Jewellery and
Products
Strength in gold products continued given its nature of value
preservation and defensiveness under the current macro
environment and its increasing popularity among youngsters. The
solid demand in key collections such as HUÁ Collection and ING
Collection drove sustained strength in gold jewellery and
products in both markets. These collections registered RSV growth
in excess of 50% and 40% respectively during the Quarter. In the
Mainland, SSS for gold jewellery and products rose 32.5% during
the Quarter. ASP was resilient at HK$5,600 (3QFY2023: HK$5,100).
In Hong Kong and Macau, SSS of this product category surged by
104.3%, benefitting from the Mainland tourist influx and festive
demand. Its ASP also ascended to HK$8,100 (3QFY2023: HK$6,600).
In the near term, we expect Chinese consumers to continue showing
a strong preference for quality gold jewellery differentiated by
exquisite craftsmanship. To capture the demand by our younger
consumers, we are progressively leveraging our extensive R&D and
IP in product design to incorporate rich Chinese cultural
elements in some of our collections.
Since November, we have progressively rolled out the change from
weight-based pricing to fixed pricing for selective gold
jewellery products. We observed positive and encouraging
responses from the market with strong growth recorded in
December. Given the current growth trajectory validated by market
feedback, we recognise the potential to grow contributions more
substantially. We will take a calibrated approach with our
allocation of resources to plan for growth as we execute our
strategic priority of product optimisation.
As 2024 marks the Year of Dragon in the Lunar calendar, this
typically translates to a good year for jewellery consumption,
particularly around CNY. We will be launching our new HUÁ
Collection featuring the Dragon later this month to seize the CNY
sales opportunity.
Sustaining Our Growth Trajectory Through Execution of Five
Strategic Priorities and Brand Revamp
Despite the prevailing market uncertainties, we are firmly
focused on a bottom-up approach in diligently executing the
planned initiatives under our five strategic priorities to
sustain our growth trajectory.
As we transition to a new phase of higher value growth and with
our brand revamp set to be unveiled in April 2024, our focus
remains steadfast on executing our five strategic priorities to
drive a sustained enhancement in earnings quality. We recognise
the fluidity of the market and continue to stay nimble and pay
close attention to consumers' spending to calibrate our growth
strategy accordingly.
###
Chow Tai Fook Jewellery Group Limited
Chow Tai Fook Jewellery Group Limited (the "Group"; SEHK stock
code: 1929) was listed on the Main Board of The Stock Exchange of
Hong Kong in December 2011. The Group's vision is to become the
most trusted jewellery group in the world.
Founded in 1929, the Group's iconic brand "CHOW TAI FOOK" is
widely recognised for its trustworthiness and authenticity, and
is renowned for its product design, quality and value. A
long-standing commitment to innovation and craftsmanship has
contributed to the Group's success, along with that of its iconic
retail brand, and has been embodied in its rich heritage.
Underpinning this success are our long-held core values of
"Sincerity * Eternity".
The Group's differentiation strategy continues to make inroads
into diverse customer segments by catering to a bespoke
experience for different lifestyles and personalities, as well as
customers' different life stages. Offering a wide variety of
products, services and channels, the Group's brand portfolio
comprises the CHOW TAI FOOK flagship brand with curated retail
experiences, and other individual brands including HEARTS ON
FIRE, ENZO, SOINLOVE and MONOLOGUE.
The Group's commitment to sustainable growth is anchored in its
customer-centric focus and strategies, which are in place to
promote long-term innovation in business, in people and in
culture. Another asset underpinning sustainable growth is a
sophisticated and agile business model. This supports the Group
by fostering excellence and extending opportunities along the
entire value chain to communities and industry partners across
the world.
With an extensive retail network in China, Japan, Korea,
Southeast Asia, the United States and Canada, as well as a
fast-growing smart retail business, the Group is implementing
effective online-to-offline ("O2O") strategies to succeed in
today's omni-channel retail environment.
________________________________________________________________________________
Media Enquiries:
Chow Tai Fook Jewellery Group Limited
Haide Ng
Senior Manager, Investor Relations and Corporate Communications
Tel: (852) 3115 4402
Email: haideng@chowtaifook.com
Acky Chan
Senior Manager, Investor Relations and Corporate Communications
Tel: (852) 3115 4403
Email: ackychan@chowtaifook.com
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Retail Sales Value In 3QFY2024, Driven by Steady Progress of
Ongoing Transformation
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