Chow Tai Fook net profit rises 3.9pc, says it will open 100 new shops this year
Jeweller says it will open up to 100 new retail locations to tap resurgent spending by mainlanders on luxury goods
Chow Tai Fook Jewellery, the world’s largest listed jeweller by market value, said on Thursday that it plans to add up to 100 new retail locations on the mainland after reporting earnings that matched expectations, thanks in part to a rebound in mainland Chinese consumption of luxury products.
The jewellery chain saw its net profit for the 12 months to March rise 3.9 per cent year on year to HK$3.06 billion (US$390 million), or 30.6 HK cents per share. That was in line with the estimates of analysts polled by Thomson Reuters.
The company will pay a final dividend of 10 HK cents per share and a special dividend of 20 HK cents per share.
Revenue fell 9.4 per cent to HK$51.2 billion, compared with a 12 per cent decline in the 2016 financial year.
Chow Tai Fook planned to expand its network on the Chinese mainland, executive director Adrian Cheng Chi-kong said during the results briefing on Thursday evening.
“The group wants to open 70 to 100 more stores in mainland China in the next financial year, mainly in third-tier and other cities,” Cheng said.
