Advanced Search

Luk Fook Sales Tank During Pandemic

Jul 26, 2020 7:47 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Luk Fook’s sales plunged 71% in the first fiscal quarter as the coronavirus continued to reduce foot traffic and tourism.

Total same-store sales — at Luk Fook outlets open for more than a year — in Hong Kong and Macau dropped 76% in the three months ending June 30, the company said last week. Same-store sales of gold priced by weight slid 72%, while purchases of fixed-price jewelry plummeted 81%.

The Hong Kong luxury market, which relies largely on tourists from China, was heavily affected by border restrictions requiring visitors to quarantine for two weeks, bringing the number of travelers to the municipality to a near standstill. The market gradually recovered in Hong Kong in June, with the decline narrowing to 62% from 82% in April and May. Demand in Macau showed no improvement in June, the jeweler noted. The figures are for shops it operates itself, but exclude franchises.

The decline in mainland China was less extreme than in Hong Kong and Macau, as consumer sentiment began to recover after most shops reopened during the period, Luk Fook said. Overall same-store sales in the country fell 40%, with revenue from gold products falling 45% and fixed-price jewelry down 32%.

Luk Fook plans to close five shops in Hong Kong during the year, as it expects a slow recovery in the market and the tourist industry, it stated. It will open at least 150 locations in China by the end of the year. At the end of the quarter, Luk Fook had 178 self-operated stores, of which 107 were in mainland China, 49 in Hong Kong, 11 in Macau and 11 in other locations. The retailer also has 1,879 licensed shops.

Image: A Luk Fook store in Hong Kong. (Hpalsgm)
Tags: COVID-19, Luk Fook, Rapaport News
Similar Articles
Signet counter cleaningSignet Gaining Market Share as Sales Soar
Jun 10, 2021
Sales at Signet Jewelers stormed past the company’s expectations in the first fiscal quarter as the retailer’s
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2021 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.