HONG KONG—Chinese jewelry giant Chow Tai Fook said its same store sales dropped 18 percent in the third quarter amid poor consumer sentiment and a “relatively weak” luxury market in Hong Kong.
Same store sales declined 15 percent in the group’s mainland China stores and fell 21 percent in Hong Kong, Macau and other markets, the company said. Luxury retailers have been hurt by an ongoing anti-graft campaign that has curtailed spending on expensive gifts such as watches, jewelry and fancy alcohol. Slowing economic growth in China has also made some retailers concerned about consumer sentiment.
Same store sales of lower margin gold products, one of Chow Tai Fook’s trademarks, were down 21 percent while sales of gem-set jewelry fell 12 percent. The dip in gem-set jewelry was mainly due to weak consumer sentiment for high-end jewelry in Hong Kong and Macau. Sales of gold products are down from a comparatively high base last year, when gold prices dropped. Overall, sales of gold products made up 56 percent of total retail sales value while gem-set jewelry made up 27 percent, the company said.
Chow Tai Fook said it opened a net 52 points of sales during the quarter and closed a net 5 watch points of sales. The group now has a total of 2,243 points of sale.
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