Chow Tai Fook Jewellery Group, the largest jewellery retailer in China, has reported a decline in sales for the first fiscal quarter.
Chow Tai Fook sales dropped by 3.7 per cent for the quarter ending 30 June, marked by a 2.8 per cent decline in sales from mainland China and a combined 11 per cent drop in Hong Kong and Macau.
The report attributed the decline to a recent resurgence of COVID cases.
Recent waves of COVID in China have resulted in lockdowns and travel restrictions and has impacted Hong Kong and Macau where tourism plays a significant role in jewellery sales.
The report stated that sales were positive in June, however, not enough to offset the decline in April and May.
Same-store sales in mainland China, for stores which have been open for at one year, declined by 19 per cent.
Chow Tai Fook is the world’s second-largest jewellery retailer by market value and has been rallying behind its “dual-force strategy” for business expansion, opening an additional 1,361 stores in China.
The company has more than 5,900 stores worldwide.