Gold prices take shine off Luk Fook sales
A slight increase in gold prices was reflected in third-quarter same-store Luk Fook sales.
Coming off a relatively high base, growth was just 1 per cent for the jewellery retailer, with gold products taking a 3 per cent dive. On the other hand, with the market improving in Hong Kong and Macau, gem-set jewellery sales rose 10 per cent overall.
A wider variety of stylish, good-value-for-money products resulted in an 11 per cent upswing for the markets, says Luk Fook. However, gold products slid 4 per cent.
Because of the base of Mainland China being higher than that of Hong Kong and Macau, its same-store sales for gold products fell 2 per cent and that for gem-set jewellery dropped 7 per cent.
At end of the quarter, Luk Fook had 71 more shops on the mainland, six of them its own and the rest licensed.
Overall, the group had 224 of its own shops at the end of December, including 157 in China, 47 in Hong Kong, 10 in Macau and 10 overseas. Together with 1390 licensed shops on the mainland and one in Korea, there were a total 1615 Lukfook shops worldwide, 1547 of them in China.