Investors in the Hong Kong-based retail jewelry giants have had better months than in April. Shares of Chow Tai Fook and Luk Fook Holdings – considered the first and third largest jewelry companies in the region – fell 10 percent and 12 percent respectively during the month, as both signaled a slowdown in sales growth during the fourth fiscal quarter that ended March 31, 2014.
Growth was still relatively strong – at least at Chow Tai Fook. Sales were boosted by a decent Chinese New Year season but have slowed since then. Most retailers would envy the 22 percent year-on-year revenue growth that Chow Tai Fook reported during the quarter – even if it’s some distance away from the 49 percent growth the company registered in the first half of the fiscal year. Less impressively, Luk Fook saw group same-store sales decline 10 percent during the fourth quarter.