Covid-19 Resurgence Dents Luk Fook Sales

RAPAPORT… Hong Kong-based jeweler Luk Fook reported same-store sales fell 8% in the fourth fiscal quarter as a sharp uptick in coronavirus cases restricted consumer purchases.

Same-store sales dropped 17% year-on-year in Hong Kong and Macau for the three months ending March 31, as the rise in virus cases and tighter restrictions hindered sales, the jeweler said last week. Same-store sales of gold products slid 17% during the quarter, with fixed-price jewelry down 18%.

In mainland China, same-store sales — at self-operated branches open for at least a year — grew 5% year on year for the three months ending March 31, the jeweler said last week. Higher sales volume of gold products in January and February primarily contributed to the increase. While sales in the first two months of the quarter rose 29%, a surge in Covid-19 cases drove lockdowns in March, hindering growth.

Same-store gold sales climbed 12% on the mainland during the period, while fixed-price jewelry slipped 14%. Revenue from e-commerce in China jumped 50%.

Luk Fook opened a net 52 shops on the mainland during the quarter, bringing its regional total to 2,736 stores as of March 31.

Image: A Luk Fook store in China. (Luk Fook)