Hong Kong Reopening Boosts Luk Fook

Luk Fook’s same-store sales surged 83% in the fourth fiscal quarter as Hong Kong lifted its travel restrictions and tourists resumed visits to the municipality.

Same-store sales skyrocketed 124% year on year in Hong Kong and Macau for the three months ending March 31, as spending by travelers and local consumers saw a strong improvement, the jeweler said last week. Same-store sales of gold products jumped 145% during the quarter, while fixed-price jewelry climbed 88%.

The growth in Hong Kong, where Luk Fook is headquartered, outweighed a softer rebound in China, the company explained. On the mainland, same-store sales — at self-operated branches open for at least 12 months — slipped 6% year on year for the period. Same-store gold sales fell 3%, with fixed-price jewelry down 15%. Revenue from e-commerce in China rose 23%.

“Due to the significant improvement in tourist traffic and spending in the Hong Kong and Macau market after the reopening of borders, the same-store sales of [the] Hong Kong and Macau market rebounded substantially from a decline in the last quarter,” Luk Fook observed. “There was a slower recovery of consumption sentiment in the mainland market.”

Luk Fook opened a net 30 shops on the mainland during the quarter, bringing its regional total to 3,029 stores as of March 31.

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