CHOW TAI FOOK (01929) announced certain unaudited key operational data for the three months ended December 31, 2025 (the third quarter), revealing a 17.8% year-on-year increase in retail sales value. Within this, retail sales value in Mainland China grew by 16.9%, while the Hong Kong, Macau, and other markets saw a 22.9% increase. During the third quarter, the company observed a gradual improvement in the jewelry consumption atmosphere. Sales growth in both Mainland China and the Hong Kong and Macau regions accelerated further during the period. In Mainland China, same-store sales growth for directly operated stores rose to 21.4% for the quarter, while same-store sales growth for加盟店 (franchise stores) reached 26.3%. Excluding the watch business, same-store sales growth for directly operated stores was 25.6% during the period. Same-store sales in Hong Kong and Macau grew 14.3% year-on-year, with Hong Kong up 10.1% and Macau surging 31.3%. The average selling price (ASP) for priced gold jewelry remained robust during the quarter. The ASP in Mainland China increased to HK$11,000 (Q3 FY2025: HK$7,300), while the ASP in Hong Kong and Macau rose to HK$20,100 (Q3 FY2025: HK$13,300). The ASP for priced jewelry also maintained its strength. In Mainland China, the ASP for priced gold jewelry (including gold products and gold-set jewelry) climbed to HK$9,500 (Q3 FY2025: HK$5,200), while the ASP for gem-set jewelry increased to HK$8,900 (Q3 FY2025: HK$8,000). In Hong Kong and Macau, the ASP for priced gold jewelry rose to HK$8,300 (Q3 FY2025: HK$4,700), and the ASP for gem-set jewelry was HK$17,500 (Q3 FY2025: HK$18,700). Throughout the quarter, the company steadily advanced its brand transformation, focusing on strengthening its iconic product collections. It launched new products under the CHOW TAI FOOK Heritage collection to boost its sales and appeal. Simultaneously, the company attracted younger customers by developing new products, including collaborating with Hong Kong Disneyland to launch its first blind box series featuring Duffy and Friends. Since embarking on its brand transformation journey, the performance of newly designed stores has consistently outperformed that of regular stores, demonstrating higher productivity. During the quarter, the company continued to open new-concept stores to enhance the brand experience, including locations at Singapore's Jewel Changi Airport and Shanghai's Grand Gateway 66 in China. Both are high-end luxury retail locations in their respective cities, perfectly aligning with the CHOW TAI FOOK brand image. In Mainland China, driven by iconic product collections and jadeite jewelry, the company's priced jewelry maintained strong sales growth. The retail sales value growth for this product category accelerated compared to the previous quarter, increasing 59.6% year-on-year. The contribution of priced jewelry to the retail sales value expanded significantly to 40.1% during the quarter (Q3 FY2025: 29.4%), while the contribution of计价黄金首饰 (valued gold jewelry) decreased to 56.8% (Q3 FY2025: 66.8%), which is favorable for gross margin expansion. Sales performance during the Double Eleven shopping festival was robust, and supported by enhanced customer engagement and successful IP collaborations, Mainland China's e-commerce retail sales value remained strong during the quarter, rising 25.3% year-on-year. Its contribution to Mainland China's retail sales value was 7.4% for the quarter, and its contribution to sales volume was 17.0%. CHOW TAI FOOK加盟店 (franchise stores) contributed 66.2% to Mainland China's retail sales value during the quarter (Q3 FY2025: 69.7%). In the Hong Kong, Macau, and other markets, the retail sales value contribution from priced jewelry was 29.8% during the quarter (Q3 FY2025: 39.4%), while the contribution from计价黄金首饰 (valued gold jewelry) was 65.4% (Q3 FY2025: 54.8%). The company continued to optimize its retail point network, closing underperforming stores and opening high-productivity stores in core locations to maintain market leadership and strengthen the resilience of its retail network portfolio through store management. During the quarter, the company selectively opened 34 CHOW TAI FOOK retail points in Mainland China and closed 264 retail points, resulting in a net closure of 230 retail points. In Hong Kong and Macau, the company opened 3 retail points during the quarter. International expansion is viewed as the next step for growth. The company continues to implement a dual-pronged strategy, focusing on revitalizing key existing markets while actively expanding into new markets with high potential. By June 2026, the company plans to launch new stores to enter international markets, concentrating on selected premium locations.
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