CHOW TAI FOOK INCREASED ITS REVENUE BY 38 PER CENT IN THE OPENING TWO MONTHS OF THE FINANCIAL YEAR
13th June 2023
Chow Tai Fook, the second largest jewellery retailer globally, experienced a remarkable rebound in sales, with a revenue increase of 38% during the initial two months of the current financial year. This growth can be attributed to the relaxation of pandemic restrictions that allowed for improved business conditions. In the preceding year, the company had witnessed a sales decline of over four percent, amounting to $HK94.68 billion ($AU17.89 billion).
Expansion Efforts and Optimistic Outlook
In 2022, Chow Tai Fook undertook an ambitious expansion initiative by launching more than 1,600 new points of sale in mainland China. As a result, the company’s store count has now surpassed 7,200, surpassing its targeted goal set for 2025. Recognizing the government’s emphasis on revitalizing businesses in the mainland, Chow Tai Fook expressed confidence in the positive impact this focus would have on retail and economic activities in mainland China, Hong Kong, and Macau. The company anticipates a promising performance in fiscal year 2024, projecting a year of recovery and normalcy with a resumption of same-store sales growth in mainland China, Hong Kong, and Macau.
“The [Chinese] government’s focus on getting businesses back in the mainland will be a positive catalyst to drive retail and economic activity in both the mainland and Hong Kong and Macau, and is supportive of our fiscal year 2024 performance,” the company said in a statement.
Chairman’s Vision and Strategic Priorities
Chairman Henry Cheng emphasized Chow Tai Fook’s advantageous position as a jewellery company with nearly a century of history and expertise in mainland China and Hong Kong. Cheng expressed the company’s readiness to seize emerging opportunities and leverage its capabilities to expand its business. He outlined five strategic priorities aimed at enhancing competitiveness, improving earnings quality, and creating sustainable value for stakeholders.
“We are encouraged by the gradual resumption of business in our key markets and expect fiscal [year] 2024 to be a year of recovery and normality with same-store sales to resume expansion in the mainland and Hong Kong and Macau.”
Chow Tai Fook’s aggressive mainland expansion takes the company’s store count beyond 7,200, well ahead of a planned target date of 2025.
Chairman Henry Cheng said: “As one of the largest jewellery companies in the world, with almost 95 years of history and experience in Mainland China and Hong Kong, Chow Tai Fook is well-positioned to seize emerging opportunities and build on our capabilities to expand the business.”
“Our five strategic priorities will enable us to strengthen our competitiveness, enhance earnings quality and drive sustainable value creation for our stakeholders.”
Factors Contributing to Success
The positive start to the current year for Chow Tai Fook can be attributed to two key factors. Firstly, the resurgence of tourism in the region has significantly contributed to the company’s sales recovery. Secondly, there has been an upswing in spending on bridal jewellery, fuelled by pent-up demand resulting from the pandemic.
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