Chow Tai Fook Jewellery Group (1929) Q1 2025 earnings summary

Executive summary

• Retail sales value (RSV) for the group declined 20.0% year-over-year for the quarter ended 30 June 2024.

• Same store sales (SSS) dropped sharply in both Mainland China and Hong Kong & Macau, reflecting ongoing macroeconomic challenges and high gold price volatility.

• Store network optimization led to a net closure of 91 POS in Mainland China, focusing on improving productivity and profitability.

Financial highlights

• RSV in Mainland China fell 18.6% year-over-year, while Hong Kong & Macau and other markets saw a 28.8% decline.

• SSS in Mainland China self-operated stores decreased by 26.4%, and franchised stores by 19.1% year-over-year.

• SSS in Hong Kong & Macau dropped 30.8% year-over-year, with Hong Kong down 27.4% and Macau down 41.3%.

• RSV of franchised stores in Mainland China decreased by 16.3%, outperforming self-operated stores.

Segment performance

• Gold jewellery and products accounted for 76.9% of RSV in Mainland China and 74.0% in Hong Kong & Macau.

• Sales contribution from higher-margin fixed-price gold products in Mainland China rose to 15.8% from 5.7% year-over-year.

• E-commerce contributed 5.8% of RSV and 13.8% of volume in Mainland China.

• Gem-set jewellery ASP increased to HK$8,600 in Mainland China and remained stable at HK$16,400 in Hong Kong & Macau.