Chow Tai Fook’s sales in Hong Kong and Macao fell by 6% in the previous quarter. The macro environment is uncertain.
After the cosmetics retailer Salsa (00178) announced earlier that the third quarter (ie last October to December) turnover was unexpectedly recorded, another line of indicator retailer Chow Tai Fook (01929) also fell. Chow Tai Fook announced the third quarter operating data yesterday. Same-store sales in Hong Kong and Macao decreased by 6% year-on-year, the first decline in two years; the Chinese market was also inferior, and same-store sales fell 7% year-on-year. Chow Tai Fook explained that the weak sales were mainly affected by the uncertainty of the macro environment.
Analysis refers to the disclosure has not been unexpected
Some foreign retail analysts said that they are not surprised by the data released by the company. As the management announced its interim results in November, it has disclosed that the business in November has rapidly deteriorated, and the number of high-priced single-store sales in Hong Kong has dropped. The performance of the whole quarter is now similar to the guidance they gave to the market at the time. The stock price has also been reflected. I believe that the decline will be extended to at least the second half of the year, given the economic slowdown in the Mainland and the unstable stock market."
Chow Tai Fook’s Hong Kong and Macau same-store sales increased by 23% in the second quarter of this financial year (ie from July to September last year) to a sharp decline in the third quarter to 6%. The overall retail sales and same-store sales also fell by 1% and 11% respectively. The same-store sales of jewellery inlaid jewellery fell by 8%, and the average selling price decreased by 300 yuan to 11,500 yuan. The proportion of total sales in Hong Kong and Macao fell from 68% in the second quarter to 57% in the third quarter, reflecting the high-end luxury goods. When the economic environment weakened, sales were obviously hit. The same-store sales of gold products fell by 6%, but the price of the products still rose by 400 yuan per year to 7,400 yuan. It is worth noting that during the period, the contribution of mainland tourists to sales increased from 42% to 47%, but failed to promote Hong Kong and Macao sales.
Luke contribution accounted for the increase in helpless sales
In the Mainland, same-store sales and same-store sales in the third quarter fell 7% and 11% respectively, and overall retail sales rose 1%. Among them, jewelry inlaid jewelry same store sales fell 5%, the average selling price fell 300 yuan to 6600 yuan; gold products same store sales fell 11%, but the average product price increased 400 yuan to 4300 yuan. In addition, e-commerce retail sales fell 7%, while sales increased by 12%. During the period, there were a net increase of 4 retail outlets in Hong Kong, South Korea and Malaysia, with a net increase of 259 retail outlets in the Mainland. As of the end of last year, the group had a total of 3,085 retail outlets.
Last year, the consumption was booming and the number of visitors to the Mainland increased. The sales of Chow Tai Fook in Hong Kong and Macau increased. In the first quarter (April to June last year) and the second quarter, Hong Kong and Macao markets recorded strong growth. The same store sales rose 26% and 23% respectively. Until the end of September last year, the Sino-US trade war, the depreciation of the renminbi and the decline in the stock market, the consumer sentiment weakened, the jewellery market began to turn, and the retail sales of the jewellery market in Hong Kong fell by 3.9% in November. The Chairman of the Hong Kong Retail Management Association, Mr. Xie Qiu, also pointed out that due to the above factors, consumer sentiment has deteriorated, especially for high-priced consumer goods.
On the other hand, Sa Sa’s third-quarter turnover fell 2.2%, of which sales in December plunged nearly 12% year-on-year. After the market price cut in the past few days, it continued to find the bottom yesterday, and the stock price fell to 2.58 yuan. It hit a 52-week low and fell 2.6% for the whole day. It closed at 2.59 yuan.