New Stores Fuel Chow Tai Fook Sales Growth

RAPAPORT... Chow Tai Fook's sales and profit rose during the fiscalyear amid increased purchases of gold jewelry and an expansion of the company'sretail network in China, it said Thursday. Group sales grew 13% to HKD 66.66 billion ($8.5 billion) forthe year ending March 31. Retail sales in mainland China climbed 8% to HKD30.42 billion ($3.88 billion), while revenue from Hong Kong and Macau jumped12% to HKD 23.06 billion ($2.94 billion). Other revenue came from the company's wholesalebusiness, which accounted for 20% of overall sales.   Gold was the company's strongest seller during the period. Group sales of gold surged 13% to HKD 31.89 billion ($4.07 billion) for the year, while revenue from gem-set jewelry rose 4.5% to HKD 12.19 billion ($1.55 billion). Additionally, the retailer added a net 549 new points of sale, primarily in mainland China, giving it a total of 3,134 as at March 31. "All product categoriesexhibited positive growth during the financial year, among which gold productsillustrated a relatively stronger performance," the company said.  Same-store sales in mainland China - for outlets open morethan a year - increased 3.4%, while those in Hong Kong and Macau rose 9%. WhileChina exhibited growth throughout the fiscal year, Hong Kong and Macau noted a19% increase in the first half, followed by a flat second half as economicuncertainty dampened consumer sentiment, the company explained. Net profit leaped 11% to HKD 4.68 billion ($597.4 million) for the year.Image: A Chow Tai Fook store in Hong Kong. (Wpcpey)