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Where did all the Rolex watches go? Check Hong Kong’s $19 billion mega-jeweller for clues

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Hong Kong-headquartered Chow Tai Fook Jewellery Group has released its full year financial results showing group revenue rising 23.6% to $9.04 billion for the 12 months ending March 31.

The jewellery and watch giant, which has a retail network of 4,591 points of sale, dramatically increased its focus on mainland China, where same store sales rose by 31.9%, more than offsetting a decline of 41.3% in Hong Kong and Macau.

Core operating profit increased by 51.7% to $1.1 billion.

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Chow Tai Fook Jewellery Group is listed on the Hong Kong stock exchange.

Its share price has tripled since the early days of the pandemic, from HK$5.2 in early April 2020 to HK$15.08 today.

That share price values the group at $19.3 billion.

To put the scale of Chow Tai Fook in context, Watches of Switzerland Group’s market capitalisation rose above £2 billion ($2.8 billion) today after another surge in its share price.

Watches of Switzerland Group does sell more watches than Chow Tai Fook Jewellery, according to WatchPro analysis of their financial statements.

Luxury watches accounted for 87% of WOSG’s full year sales of £905.1 million ($1.27 billion), which means £787 million ($1.1 billion) turnover from timepieces.

At Chow Tai Fook, watches account for only 7.6% of sales, which is £500 million ($700 million).

More than half of Watches of Switzerland Group’s turnover is from Rolex, the company’s CEO revealed in 2019.

So, if you are wondering where all the Rolex watches are when you are gazing longingly at empty cabinets in your local authorised dealer, look no further than the likes of Chow Tai Fook and Watches of Switzerland.

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