Chow Tai Fook Boosts Margins and Operating Profit Despite 17.5% Sales Decline

The Chinese jewelry company closed its 2025 fiscal year with a strong expansion of margins and profit growth, despite the decline in sales and the pressure of gold prices. The group posted an operating profit of 14.746 billion Hong Kong dollars (1.748 billion euros), up 9.8% on the previous year, thanks to its brand transformation process and a product-focused strategy.

During the year ended March 31, Chow Tai Fook raised its gross margin to 29.5% and increased its operating margin to 16.4%, compared to 12.4% in the previous year. Turnover, however, fell by 17.5%, weighed down by the moderation of consumption and the volatility of gold prices.

One of the cornerstones of the change, according to the company, has been the transformation of the point of sale. The company has launched five new flagship stores in Hong Kong, Shanghai, Shenzhen, Wuhan and Xian, with a more premium format and aimed at improving the shopping experience. These spaces have achieved higher-than-average productivity since opening.

At the same time, the company has continued to optimize its network. In mainland China, where it has 6,274 outlets, new openings have doubled the productivity of closed stores. In Hong Kong and Macau, the network remained stable at 87 stores. Abroad, the company has strengthened its presence in Thailand, Malaysia and Japan.

Chow Tai Fook operates more than 6,000 outlets in mainland China.

Sales of fixed-price gold jewelry soared 105.5% year-on-year, now accounting for 19.2% of the revenue mix in the gold category in China, up from 7.1% the previous year. Collections such as the collaboration with the Palace Museum individually exceeded 4 billion Hong Kong dollars (474 million euros) in sales.

The company also broke into the luxury pet market with a pioneering line in China. In addition, it strengthened its commitment to licensing and collaborations with brands popular with Generation Z, such as Chiikawa or Black Myth: Wukong.

In ecommerce, the company focused on live shopping and sales through its own influencers. In China, digital sales accounted for 13.8% of volume. In Hong Kong and Macau, ecommerce grew 91%, driven by the redesigned website and licensed collections.

Looking ahead to next year, in an uncertain context marked by the evolution of consumer policies in China and the pressure of gold prices, Chow Tai Fook will continue to adjust its retail network, invest in innovation and strengthen its positioning.