Chow Tai Fook Jewelry plans 400 new outlets in mainland China
Nov 30, 2018 (China Knowledge) - Chow Tai Fook Jewelry which is also the world’s largest jeweler by market value is planning 400 new shops, starting from April next year, to capture the market in China’s second tier cities.
The company reported an increase in operating profit of 24.7% to HKD 2.989 billion for the 6 months ended September 30. Earnings per share increased to HKD 0.19 with the company planning to pay out an interim dividend of HKD 0.15 per share. Same store sales in Hong Kong and Macau grew by 24.4% while that in mainland China grew by 4.9%.
Despite the company’s strong performance over the last 6 months, the company expects a slowdown in sales for the remaining months of its fiscal year which ends in March next year. The company plans to boost sales through a multi-brand approach and innovative retail experience in the coming months.
Last year, Chow Tai Fook introduced a new jewelry chain Monologue which is targeted at younger customers who are seeking more affordable jewelry and more modern designs. The company also plans to focus more on gems and diamonds to target younger customers in Hong Kong. Over the past 6 months, the company’s T Mark diamond brand saw retail sales grow by 134% in mainland China and 156% in Hong Kong and Macau.
Over the past financial year, Chow Tai Fook added 233 retail stores to its network, mostly due to its expansion in China. The company also added 4 outlets in South Korea, Japan, Malaysia and Singapore. The company has 2,822 outlets globally with 2,682 of them located in mainland China.
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