Luk Fook’s retail revenue falls in third quarter

luk fook jewellery store exterior
Luk Fook posted lower retail revenue in the fiscal third quarter. (Source: Lukfook Jewellery/Facebook)

Luk Fook posted lower retail revenue in the fiscal third quarter as high gold prices continued to weaken consumer sentiment.

The group’s retail revenue fell 9 per cent as Hong Kong and Macau plunged 20 per cent and Mainland China soared 27 per cent.

Overall same-store sales plummeted 22 per cent, with Hong Kong and Macau decreasing 24 per cent and Mainland China falling 11 per cent.

In terms of products, same-store sales of gold fell 26 per cent while fixed price jewellery slid 7 per cent.

During the three months ended March 31, the group saw a net decrease of 65 shops.

Moving forward, the company plans to actively promote non-diamond fixed price jewellery products as demand for diamond products remains weak.

The company also anticipates sales of gold products to resume to normal levels after consumers adapt to high gold prices.

Luk Fook targets to allocate more resources for expansion and add about 15 shops in the overseas markets in the current financial year.

The company forecasts business performance to improve in the second half.

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