Chow Tai Fook Jewellery Group (Chow Tai Fook) reported record earnings for the year ended 31 March 2026, underscoring the momentum of its brand-transformation strategy.
Revenue rose 5.30% year on year to HK$94.40 billion, while profit attributable to shareholders surged 52.20% to HK$9.00 billion. Gross profit expanded 15.30% to HK$30.50 billion, lifting the gross margin by 2.8 percentage points to 32.3%. Operating profit climbed 27.80% to HK$18.85 billion, taking the operating margin to a five-year high of 20.0% (+3.6 ppts).
Geographically, the Chinese Mainland remained the core market, contributing HK$75.97 billion of revenue, up 1.90% despite extensive network rationalisation. Hong Kong & Macao and other overseas markets delivered HK$18.43 billion, up 22.00%, buoyed by tourism recovery and new flagship openings in Singapore, Bangkok and Sydney.
Product mix continued to tilt towards higher-margin lines: fixed-price jewellery accounted for 31.5% of sales (FY2025: 28.9%), while weight-based gold jewellery represented 64.2%. Same-store sales growth (SSSG) in self-operated Mainland stores was 6.9%, with fixed-price jewellery up 11.4%. Hong Kong & Macao posted a stronger overall SSSG of 16.8%, driven by a 28.3% gain in weight-based gold jewellery.
Cost discipline supported profitability. The SG&A ratio fell 0.8 ppts to 13.1% as variable staff costs and concessionaire fees were tightly managed. Inventory days lengthened to 364 (FY2025: 320) on higher gold holdings, while total capex was contained at HK$593.00 million.
Net gearing narrowed to 44.2% (31 Mar 2025: 54.4%), and return on equity rose to 28.4% (FY2025: 21.9%). The board declared a full-year dividend of HK$0.67 per share—including a proposed final dividend of HK$0.45—implying a 73.4% payout ratio.
The group closed 949 franchised points of sale (POS) in the Mainland but opened 439 new outlets in prime locations and added eight luxury-format stores. New stores generated average monthly sales of HK$1.60 million, 57% higher than FY2025 openings, reflecting enhanced retail experiences and product curation.
Chow Tai Fook highlighted progress on its “Three R” growth levers—Redefine Chinese luxury globally, Rejuvenate portfolio efficiency, and Reimagine new horizons. Signature fixed-price collections such as Rouge and Palace Museum bolstered brand equity, while the company formally entered the high-jewellery segment and increased international e-commerce penetration.
Looking ahead, management reiterated FY2030 ambitions of above-market revenue growth, return on equity above 25%, and a 50% reduction in greenhouse-gas emissions versus the FY2024 baseline, underpinned by disciplined capital management and continued network optimisation.