Mainland Recovery Can’t Save Luk Fook Sales

RAPAPORT… Sales at Luk Fook slid in the third fiscal quarter as a slump in the Hong Kong market outweighed a recovery on the mainland.

Group-wide same-store sales — at branches open for at least a year — fell 29% year on year during the three months ending December 31, the retailer reported last week.

Same-store sales in China rose 4% as the country brought the pandemic under control and gold prices declined, while online sales on the mainland rose 54% during the period.

However, same-store sales in Hong Kong and Macau slid 35%. The decline in Macau improved to a decrease of 20%, compared to a decline of 80% in the previous quarter, as border restrictions were lifted. However, a 40% slump in Hong Kong more than offset the Macau results, the company noted.

During the quarter, Luk Fook added a net 133 shops in China, bringing its store count on the mainland to 2,249 as of December 31. In total, the jeweler has 2,322 locations.

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