Chow Tai Fook’s Q2 Sales Continue to Slide
July 13, 16
(IDEX Online News) – China’s largest jewelry retailer by market value Chow Tai Fook has reported its results for the second quarter ended June 30, which showed that declines in same store sales in China narrowed, though Hong Kong and Macau remained weak, according to a report on Reuters.com.
The company said that a decline in visitor numbers to Hong Kong and Macau was at least partly responsible for a 22-percent decrease fall compared to the same period a year previously. Mainland China, however, showed a sequential improvement in same store sales.
"In view of the huge market in China, we maintain our store opening target of 50-60 stores in the current fiscal year," said Chow Tai Fook managing director Kent Wong. He added that the company expects to close seven or eight Hong Kong stores as rents remain high, the Hong Kong dollar, which is linked to the US dollar remains strong, and sales have been weakening amid stagnant consumer sentiment.