Tourism Boosts Chow Tai Fook's Q3 Sales
January 15, 24
(IDEX Online) - Hong Kong-based Chow Tai Fook (CTF) is finally enjoying the effects of the long-awaited bounce in tourism after China's Covid restrictions were lifted last August.
It has posted a 46.1 per cent increase in its Q3 retail sales value, helped by a Christmas surge and by Chinese New Year celebrations in late December. That's a notable improvement on its a 5.8 per cent increase in retail sales in the previous quarter.
The company, which has 7,200 retail outlets, said the "robust growth" was driven by outlets in Hong Kong and Macau, which saw year-on-year retail sales up by over 70 per cent.
In Singapore, Malaysia, and duty-free shops in mainland China the figure was 168.6 per cent. Retail sales were up by 42 per cent in mainland China, representing 84 per cent of total earnings.
CTF did note, however, that sales in Hong Kong and Macua for the first nine months of FY2024 were still at only 70 per cent of 2019 levels, before the pandemic hit.
Its Wonderful Life gem-set jewelry collection performed well, doubling retail sales value year-on-year, the company said, underpinning its confidence in the long-term prospects of diamond jewelry.
"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," the company said.