Hong Kong Jewelers See Revenue Spike

RAPAPORT… Sales rose sharply at Chow Tai Fook and Luk Fook in the second fiscal quarter, boosted by strong consumer demand,
the lower price of gold, and tourism.


Retail sales at Chow Tai Fook jumped 25% year on year in
Hong Kong and Macau in the three months ending September 30, while same-store sales
— at branches open for at least year — surged 23%, the Hong Kong-based jeweler reported
Thursday. Mainland retail sales increased 15%, with same-store sales up 6%.
Same-store sales only include shops Chow Tai Fook operates itself, as opposed
to franchises.



“[The] Hong Kong and Macau market recorded…impressive growth
during the quarter, benefiting from…buoyant consumer spending and resilient
mainland visitation,” Chow Tai Fook said.



Chow Tai Fook’s gold sales in Hong Kong and Macau leaped 41% on a
same-store basis, and 11% in mainland China. Gold revenue improved due to a higher average weight per product sold, the company noted.



Sales of gem-set jewelry fell 2% in Hong Kong and Macau, and
inched up 1% on the mainland. 



Meanwhile, overall same-store sales at Luk Fook — which is also headquartered in Hong Kong — grew 14% year
on year in the second quarter. Sales rose 17% in Hong Kong and Macau, with results in mainland China
improving 4%.



Gold sales in Hong Kong and Macau surged 30% at Luk Fook, buoyed
by the lower price of the metal, the company said. In mainland China, sales
remained flat.



Sales of gem-set jewelry at Luk Fook climbed 4% in Hong
Kong, and 18% on the mainland.  



Image: A Luk Fook store in Hong Kong. (Carlo Villarice)