Chow Tai Fook sales plunged in both Hong Kong and Mainland China markets in the quarter to September 30.
By value, same-store sales fell by 30 per cent in Hong Kong and Macau and by 22 per cent on the mainland. By volume, same-store sales in Hong Kong fell 39 per cent, and on the mainland by 32 per cent, compared with the same quarter last year.
Sales of gold products, which account for about 53 per cent of total sales, fell by 23 per cent in Hong Kong and Macau and by 27 per cent in the mainland. Gem set jewellery sales were down 23 per cent and 17 per cent.
In a statement, the company said its figures in both markets were affected by the high base of 2015, when there was a surge in sales of gold as the price fell.
But the changing buying behaviour of Mainland Chinese tourists also took its toll, evidenced by the percentage of total sales settled by China UnionPay of in RMB falling from 57 per cent to 43 per cent year-on-year.
Chow Tai Fook opened a net 11 points of sale during the quarter: 12 jewellery stores and one watch store opened in Mainland China, while its Hong Kong store count dropped by two. At the end of September, Chow Tai Fook had 2326 points of sale.
