Low Gold Prices Buoy Luk Fook

RAPAPORT… Sales at Luk Fook rose in the third fiscal quarter, reflecting not only a comparison with last year’s pandemic-induced slump, but also the positive impact of lower gold prices.
 
Group-wide same-store sales — at branches open for at least a year — jumped 45% year on year during the three months ending December 31, the Hong Kong-based jeweler reported last week.

Same-store sales in China grew 33%, with consumers purchasing gold jewelry as prices for the metal declined. Online sales on the mainland surged 51% during the period.

Meanwhile, same-store sales in Hong Kong and Macau climbed 41% compared to the year before, when tight border restrictions impacted tourism, which makes up a large part of the municipality’s market.

Sales of gold products rose 52% year on year overall, surging 58% in China and 45% in Hong Kong and Macau. Revenue from fixed-price jewelry gained 31% for the group as a whole. The category increased 35% in Hong Kong and Macau but fell 17% on the mainland.

During the quarter, Luk Fook added a net 155 shops in China, bringing its store count on the mainland to 2,683 as of December 31. In total, the jeweler has 2,757 locations.

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