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Luk Fook Extends Turnaround with Sales Boost

Jul 20, 2017 6:50 AM   By Rapaport News
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Luk Fook Holdings recorded an increase in sales in its fiscal first quarter, driven by an improvement in mainland China after a prolonged decline in turnover.

The Hong Kong-based jeweler reported same-store sales growth of 5% year-on-year in the three months that ended June 30, powered by a robust performance by its outlets in mainland China where gold jewelry sales were up 32%. Gem-set jewelry sales rose 10%, putting overall same-store sales growth in mainland China at 23%.

In Hong Kong and Macau, gold jewelry sales were flat, while gem-set jewelry sales grew 9% year-on-year, resulting in overall same-store sales growth of 3%.

Luk Fook marked an initial turnaround in the fiscal fourth quarter that ended March 31, when the company recorded its first quarterly same-store sales growth in three years.

As growth returned, Luk Fook continues its expansion into mainland China, where it added 14 Lukfook shops during the first quarter, including nine self-operated stores and five licensed ones. Although the group reduced the number of stores in Hong Kong by two in the first quarter, the number of shops in Hong Kong and Macau for the whole year was not expected to change.

As of June 30, the group had 206 Lukfook self-operated stores, of which 142 in mainland China, 45 in Hong Kong, 10 in Macau and nine overseas. Including licensed stores, there were 1,508 Lukfook shops worldwide at the end of the period.
Tags: China, diamonds, gem-set jewelry, gold, Hong Kong, jewlery, Luk Fook, macau, Rapaport News
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