China shores up Lukfook sales in Q3
Hong Kong jewellery retailer Luk Fook Holdings (International) Ltd saw continued improvement in sales in the third quarter of fiscal year 2021, thanks to sustained economic revival in China.
Retail sales from October 1 to December 31, 2020 were down 29 per cent from year-ago figures but reflected a slower rate of decrease from a drop of 55 per cent in the second quarter.
“With a relatively effective control of Covid-19 in the mainland market, its same store sales turned from a decline to an increase during the quarter,” noted Lukfook. “Sales performance of its e-commerce business was outstanding.”
Sales of self-operated stores in China rose 4 per cent year on year in Q3, with those of gold products rising 11 per cent. Fixed-price jewellery saw an 11 per cent dip. Licensed shops, which account for around 96 per cent of Lukfook’s total stores in China, recorded similar growth.
Hong Kong and Macau meanwhile saw an upturn in sales, with the decline narrowing substantially to 35 per cent from 63 per cent in Q2. Buoyed in part by the gradual lifting of border restrictions in Macau, the city recorded a loss of 20 per cent in jewellery sales in Q3 from about 80 per cent in the previous quarter.
Online business in China was also booming, with a year-on-year increase of 54 per cent in sales.
“With the successive introduction of vaccines, it is expected that the Covid-19 pandemic will gradually subside, and the macroeconomy and retail sentiment, especially in the mainland, will further improve,” remarked Lukfook.