Chow Tai Fook Jewellery posts smallest quarterly retail sales drop since early 2014

Chow Tai Fook Jewellery Group Ltd, the world's biggest jewellery retailer by market value, posted its smallest quarterly decline in retail sales since January-to-March last year as consumer sentiment showed signs of stabilising.

Retail sales fell 6 percent by value in the three months ended in June from a year earlier, Chow Tai Fook said late Thursday. Retail sales in Hong Kong and Macau dropped 16 percent while sales in China were flat.

Hong Kong's retail sector has been hammered by slowing mainland tourist arrivals, tighter visa rules on residents from neighbouring Shenzhen and lower mainland import taxes on some goods.

Street protests linked to unpopular electoral reforms also dampened sales. Tensions appeared to have eased after the city's legislature last month vetoed the Beijing-backed electoral reform package.

On Friday, shares in Chow Tai Fook rose 2.9 percent in early Hong Kong trading, beating the wider index.

Data last week showed sales of jewellery, watches and clocks in Hong Kong fell 14.9 percent by value in May, less than the 19.5 percent drop in April. Overall retail sales fell just 0.1 percent in May.

Chow Tai Fook's same store sales dropped 15 percent, with those in Hong Kong and Macau down 24 percent and mainland China 7 percent lower.

It opened a net 13 point of sales (POS) during the quarter, expanding the network to a total of 2,270 POS.