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Solid consumer demand coupled with the continued easing of the coronavirus situation in China bolstered Chow Tai Fook Jewellery Group Ltd’s third-quarter sales, the company announced recently.
The group’s overall retail sales during the three months ending December 31, 2020 were up 17.5 per cent, with China recording a growth of 26.1 per cent from 11 per cent in the previous quarter. Hong Kong and Macau saw a narrower rate of decline at 12.5 per cent from 51.6 per cent in Q2.
With Covid-19 cases in China abating, China’s same-store sales rose 12.2 per cent during the quarter while those in Hong Kong and Macau dropped at a slower pace, thanks to a lower base of comparison.
“Challenging macros, the pandemic development and closure of major border crossings still weighed on the retail demand in Hong Kong and Macau during the quarter,” Chow Tai Fook said.
Sales of gem-set, platinum and k-gold jewellery were down 5.2 per cent in China but gold jewellery fared better, improving by 12.7 per cent. In Hong Kong and Macau, sales of gem-set, platinum and k-gold jewellery pieces were up 14 per cent while those of gold jewellery were down 50.7 per cent.
According to the group, the pricing trend was favourable during Q3, with the average selling price of gem-set pieces in Hong Kong and Macau getting a boost from big-ticket transactions. The average selling price of gold jewellery in China increased by 20 per cent during the quarter but shrank by 23 per cent in Hong Kong and Macau as consumers opted for less expensive gold products.
International gold prices were 26.5 per cent higher in the quarter compared to the previous year, noted Chow Tai Fook.