Luk Fook’s sales improved in the second quarter, thanks to a rise in revenue from weight-based gold products in Hong Kong, Macau and China, and an improvement in demand for diamond jewelry.
Group revenue improved 8% year on year for the three months that ended September 30, the Hong Kong based jeweler reported last week. Same-store sales – at self-operated shops open for at least a year – climbed 12%.
In Hong Kong and Macau, sales increased 17%, and on the mainland, they slipped 2%. Same-store gold sales advanced 24% year on year in Hong Kong and Macau during the quarter, while fixed-price jewelry, which refers to products sold at prices the retailer determined, fell 13%. Same-store sales of fixed-price gold products dropped 10%, while fixed-price diamond goods rose 7%.
Same-store sales of gold products were up 6% in China, and fixed-price jewelry slipped 14%. Same-store sales of fixed-price gold products dipped 3% on the mainland, with fixed-price diamond goods gaining 17%.
The group opened a store in London, its first in Europe. In the first half, it also reentered Singapore, making the group achieve its full-year expansion target ahead of schedule. In the second quarter, the jeweler closed a net 69 stores, leaving it with a total of 2,788 locations.
Despite ongoing geopolitical risks and a weak mainland economy, the group remains cautiously optimistic about its long-term prospects. It forecast a net increase of 30 shops in overseas markets this financial year, while continuing to expand in China and accelerate international growth.
Image: A Luk Fook store in Hong Kong. (Shutterstock)
