Jewellers gain on solid HK, Macau recovery
Retailers Chow Tai Fook Jewellery Group Ltd and Luk Fook Holdings (International) Ltd reported strong sales in their fourth fiscal quarter ending March 31, 2023, thanks to the reopening of borders and resumption of retail activities in Hong Kong and Macau.
Chow Tai Fook said overall sales grew 14.2 per cent, with China, and Hong Kong, Macau and other markets recording respective increases of 9.6 per cent and 71.2 per cent.
“General mobility and retail activity in China and Hong Kong and Macau indicated signs of recovery, following the shift in Covid policy in China,” noted Chow Tai Fook.
By product segment, Chow Tai Fook’s gem-set, platinum and k-gold jewellery sales were down 19.3 per cent in China, but this category soared by 99.2 per cent in Hong Kong and Macau. The group also reported that gold jewellery products dipped 2 per cent in China, but saw a 116.5 per cent improvement in Hong Kong and Macau.
Meanwhile, sales at Lukfook were up 83 per cent year on year, with sales in China reflecting a 6 per cent decline as opposed to those of Hong Kong and Macau, which went up 124 per cent. Its gold product sales increased by 92 per cent while fixed-price jewellery was up 66 per cent. The group attributed its robust Q4 sales to “the significant improvement in tourist traffic and spending in Hong Kong and Macau” post-border reopening. Recovery in consumption sentiment was slower in the mainland China market, noted Lukfook.
Chow Tai Fook has a total of 7,404 points of sale (POS) and 251 POS for other brands, as of March 31, 2023, majority of which are in China. Lukfook meanwhile has 3,105 shops globally as of its fourth fiscal quarter.