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Luk Fook Sales Decline Steepens

Oct 27, 2016 4:39 AM   By Rapaport News
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RAPAPORT... Luk Fook’s same-store retail sales accelerated their quarterly decline to 37 percent as gold sales plummeted from a high base amid “sluggish” consumer sentiment.

Sales of the yellow metal by the retailer slumped 47 percent in the second fiscal quarter that ended September 30, weighed down by the negative base effect of the “small-scale gold rush” a year ago and the relatively high price this quarter. Revenue from gold dropped 49 percent in Hong Kong and Macau, compared with a 30 percent slide in Mainland China.

Total gem-set jewelry sales fell 14 percent, with revenue slipping 3 percent in Mainland China and 14 percent in Hong Kong and Macau.

Overall same-store retail sales slid 23 percent in Mainland China and 39 percent in Hong Kong and Macau. The 37 percent group-wide decline follows a 24 percent drop in sales in the first fiscal quarter. The slump in same-store revenue growth for gem-set jewelry was, however, narrower, Luk Fook said.
Tags: gold, Hong Kong, Jewelry, Luk Fook, macau, mainland china, Rapaport News, RetailChina
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