Chow Tai Fook Jewellery Group (1929) Q2 2025 earnings summary

Executive summary

• Retail sales value (RSV) for the group declined 21.0% year-over-year for the quarter ended 30 September 2024, with Mainland China and other markets down 19.4% and Hong Kong & Macau down 31.0%.

• Same store sales (SSS) fell 24.3% in Mainland China and 30.8% in Hong Kong & Macau year-over-year, with Macau experiencing a sharper 40.2% drop.

• Macro-economic factors, especially record gold prices, weighed on consumer sentiment, but the SSS decline in Mainland China narrowed sequentially.

• A new concept store was launched in Central, Hong Kong, as part of a multi-year brand transformation.

Financial highlights

• Revenue for the six months ended 30 September 2024 is expected to decrease by 18% to 22% year-over-year.

• Net profit is projected to decline by 42% to 46% year-over-year; excluding gold loan revaluations, adjusted net profit would decrease by 12% to 16%.

• Margin resilience was supported by higher average selling prices and a greater contribution from higher-margin fixed-price gold products.

Outlook and guidance

• The narrowing SSS decline in Mainland China continued during the recent Golden Week holidays, indicating some stabilization.

• The company remains focused on product optimization, pricing strategies, and strengthening business resilience amid challenging externalities.