Chow Tai Fook Jewellery Group (1929) Q3 2025 earnings summary

Executive summary

• Retail sales value (RSV) declined 14.2% year-over-year for the three months ended 31 December 2024, reflecting continued macroeconomic pressures and high gold prices impacting consumer sentiment.

• Same store sales (SSS) fell 16.1% in Mainland China and 21.3% in Hong Kong & Macau year-over-year, though the rate of decline narrowed sequentially due to gold price stabilization and product optimization.

• Product innovation and successful promotions, especially in gem-set jewellery, helped mitigate declines, with positive SSS growth of 33.7% in gem-set, platinum, and k-gold jewellery in Hong Kong & Macau.

Financial highlights

• RSV in Mainland China dropped 13.0% year-over-year, while Hong Kong & Macau saw a 20.4% decrease.

• RSV contribution from franchised stores in Mainland China was 69.7% during the quarter.

• E-commerce contributed 6.9% of RSV and 16.1% of volume in Mainland China.

• Fixed-price gold products' RSV contribution in Mainland China rose to 18.7% from 6.9% a year ago, supporting margin resilience.

Outlook and guidance

• The group remains focused on sustaining market leadership, enhancing financial health, and maximizing store productivity.

• Strategic expansion continues in overseas tourist destinations and markets with strong demand for Chinese jewellery.