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SHANGHAI — Hong Kong-based jewelers Chow Tai Fook reported revenues grew 63 percent in its first quarter ended June 30.
The group, which registered gains of 45 percent in its Mainland China stores and 85 percent in its Hong Kong and Macau stores, attributed the spike in revenue mainly to the increase in sales of gold products following a sharp decrease in the price of gold since April.
Same-store sales advanced 48 percent. Again, gold had a major impact with same-store sales growth of gold products up 78 percent.
The group hedges the majority of its gold inventory and plans to maintain a stable hedging ratio of approximately 70 percent for the foreseeable future.
Chow Tai Fook’s gross profit margin dropped 3 percent during the first quarter. According to management, this drop was mainly due to a change in product mix as the portion of gold products increased to 69 percent of revenues.
The group opened 20 new points of sale in the first quarter, including three in Hong Kong and Macau and 17 in Mainland China, bringing the total number to 1,856 as of June 30.