Hong Kong Growth Boosts Chow Tai Fook

RAPAPORT... Chow Tai Fook's sales grew strongly in the first fiscalquarter due to stronger consumer sentiment in Hong Kong and increased tourismto the municipality from mainland China. Retail sales jumped 21% in Hong Kong and Macau in the threemonths ending June 30, while same-store sales - at branches open for at leastyear - surged 26%, the jeweler reported last week. Mainland retail salesincreased 11%, with same-store sales up 4%. Same-store sales only include shopsthat Chow Tai Fook operates itself, as opposed to franchises. "[The] Hong Kong and Macau market recorded...impressive growthduring the quarter, benefiting from...improving local consumer spending andreviving [tourism from the] mainland," the company said. Gem-set jewelry sales leaped 26% on a same-store basis inHong Kong and Macau, reflecting a higher volume and average sales price.Revenue from those products slipped 4% on the mainland, where gold demandaccounted for much of the overall growth. The average international price ofthe yellow metal rose 4% year on year during the quarter, driving a 31% salesincrease for that category in Hong Kong and Macau and an 11% rise in mainlandChina, the retailer explained. The group did not provide exact sales figures.Image: Eepfarshr