BRIEF: Luk Fook’s retail sales rebound in first quarter

Jewelry retailer Luk Fook Holdings (International) Ltd. (0590.HK) announced on Thursday that its overall retail sales value and retail revenue in the three months to June returned to double-digit growth, rising 13% and 14% year-on-year, respectively. Same-store sales also rose by 5%.

The company’s retail sales value in its Hong Kong, Macao, and overseas markets rose 9% year-on-year, with retail revenue up 8% and same-store sales up 3% — all showing an improvement over previous recent levels. Specifically, same-store sales in Hong Kong increased 1%, Macau declined 1%, and overseas markets surged 20%. In Mainland China, retail sales value, retail revenue, and same-store sales rose by 14%, 31%, and 19%, respectively.

The company noted that despite a roughly 40% increase in international gold prices during the quarter, same-store sales of gold products, priced by weight, improved significantly to flat growth. Meanwhile, same-store sales of fixed-price jewelry rose by 19% during the quarter.

The company operated 3,162 stores worldwide at the end of June, a net decrease of 125 stores during the quarter, mainly due to a reduction in branded stores in Mainland China. Luk Fook remains cautiously optimistic about its medium- to long-term outlook in the Mainland and plans to open around 20 net new stores overseas its current fiscal year that runs through March 2026.

Luk Fook shares opened higher on Friday and closed at HK$22 by the midday break, up 3.04%.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here