Chinese brand Chow Tai Fook is having a healthy year of sales. Recent reports reveal that the merchant’s revenues have already surged 48.5 percent this year, to $4.87 billion (HK$37.78 billion), and same-store sales have risen 33.2 percent. Group profits, meanwhile, skyrocketed 90.4 percent to $464 million (HK$3.6 billion), and its year-over-year net profit margin rose to 9.5 percent from 7.4 percent.
The company sold gold more easily thanks to the drop in the commodity’s prices in the second quarter of 2013. Chow Tai Fook capitalized on growth opportunities with gem-set jewelry, its reputation for delivering high-quality pieces, increases in its wholesale business, and wedding jewelry and collections like Disney Princess and Rio Tinto’s Caprice that appeal to a younger generation with money to spend.
Sales of gem-set jewelry increased 14.9 percent to $664 million (HK$6.64 billion), while gold product sales skyrocketed 74.4 percent to $3.2 billion (HK$24.6 billion). Platinum product sales jumped 23.9 percent to $645 million (HK$5 billion) and watch sales were flat at $193 million (HK$1.5 billion).
Business to China grew 38.3 percent to $2.5 billion (HK$19.42 billion), and revenue from Hong Kong and Macau and other regional markets increased 61 percent to $2.4 billion (HK$18.35 billion).