Chow Tai Fook Jewellery (CTF) and Sa Sa International have reported varying same-store sales performances in different regions, with Hong Kong and Macau showing promising growth while Mainland China faces challenges.
In the quarter ending on September 30, CTF’s total retail sales value saw a year-on-year increase of 5.8 percent. Notably, CTF recorded a remarkable 55.7 percent surge in same-store sales in Hong Kong and Macau. However, sales in Mainland China declined by 12.5 percent during the same period, which CTF attributed to a high base for comparison. The company noted sustained improvements in mobility and retail activity in China but acknowledged that same-store sales faced headwinds on the mainland.
In Hong Kong and Macau, CTF benefited from the gradual return of mainland tourists, supporting an increase in same-store sales. For gold jewelry and products, same-store sales in Mainland China dropped by 9.6 percent during the quarter, also due to a high base for comparison, while the average selling price increased to HK$5,600, compared to HK$5,200 in the same period the previous year. CTF’s shares rose by 3.6 percent to HK$11.56.
Sa Sa International, on the other hand, reported expectations of a profit swing between HK$100 million to HK$115 million for the six months ending in September. This marks a significant turnaround compared to a net loss of HK$133 million during the same period the previous year. In the third quarter, Sa Sa experienced a year-on-year increase of 46.2 percent in total turnover, amounting to HK$1.1 billion. The company attributed this growth to a gradual improvement in consumer sentiment, with same-store sales surging by 61.6 percent to HK$860 million in Hong Kong and Macau.
Despite operating 37 fewer stores than the pre-pandemic period, Sa Sa’s offline sales in Hong Kong and Macau rebounded by 45.7 percent during the quarter, with a total of 81 stores as of September 30. The company also reported a shift in the tourist sales mix, decreasing to 50 percent from the previous 70 percent.
In Mainland China, Sa Sa achieved a year-on-year sales growth of 13.7 percent to HK$146.3 million. However, same-store sales in the mainland saw a decline of 10.8 percent. The offline sales in Mainland China rebounded to 57.8 percent of the pre-pandemic level, despite operating 19 fewer stores during the same period.
Sa Sa’s share price edged up by 0.94 percent to HK$1.07, reflecting the company’s positive performance in the face of challenging market conditions.
