Hong Kong retailer Chow Tai Fook Jewellery Group reported lacklustre sales in the fourth fiscal quarter due to high gold prices and ongoing macroeconomic challenges affecting consumer sentiment.

Overall retail sales value dropped by 11.6 per cent in the first three months of 2025, reflecting a decline of 10.4 per cent in mainland China and 20.7 per cent in the other markets, including Hong Kong and Macau.

“In Hong Kong and Macau, the market continued to be affected by the local outbound travel and the change in spending patterns and preferences among mainland tourists,” the group stated.

Same store sales (SSS) in Hong Kong and Macau were down 21.5 per cent and 25.6 per cent, respectively.

Despite macro uncertainties, Chow Tai Fook saw strong sales of diamond and other gemstones and inlaid gold products in mainland China. Sales of gem-set, platinum and k-gold jewellery showed a 2.4 per cent year-on-year growth during the quarter. 

“Thanks to our successful product optimisation initiatives, which drove strong momentum and demand for our fixed-price products, coupled with our effective Chinese New Year campaign, the magnitude of the SSS decline narrowed sequentially in mainland China,” the group explained. 

During the quarter, Chow Tai Fook optimised its retail network and closed 395 points-of-sales (POS) in mainland China. 

“The optimised POS portfolio has proven effective in mitigating the impact from the net POS closures in FY2025, given the improved productivity of the new stores that were opened strategically, so we are on track to sustaining our market leadership,” the group said.