Chow Tai Fook: 63% Rise in Revenues in 2013 Fiscal Q1

Chow Tai Fook reported that sales at its stores in China rose 48 percent in the quarter, in Hong Kong by 32 percent and by 78 percent in Macao while sales of jewelry set with gemstones rose by 8 percent.

Retail jeweler Chow Tai Fook reported that group revenue soared by 63 percent on the year in its first fiscal quarter that ended on June 30. The rise resulted from consumers buying gold products when gold prices fell sharply in April, Rap News reported.

Revenues reported in Mainland China jumped 45 percent and by 85 percent in Hong Kong and Macau during the quarter, while sales at its stores in China rose 48 percent in the quarter, and by 78 percent in Macao, while sales of jewelry set with gemstones rose by 8 percent.

Chow Tai Fook continues to concentrate on expanding in China, and the group opened 17 new points-of-sale in Mainland China and three in Hong Kong during the June quarter. The company had 1,856 points-of-sale as of June 30.

Chow Tai Fook improved its inventory turnover of finished goods in the first quarter to 120 days from 170 days in the previous quarter and its inventory level decreased by about 1 percent during the period.

The company said that it is continuing with a prudent procurement strategy to concentrate on fast moving products with gold accounting for 69 percent of its revenue, compared with 57 percent in the previous fiscal year. The company added that its wholesale business in China improved as franchisees increased their replenishment of inventory.

Gold prices fell sharply in mid-April and have continued to fall resulting in strong consumer demand for the yellow metal. Gold prices have declined by 25 percent since the beginning of the year.