Hong Kong – Luk Fook, the prominent Hong Kong-based jeweler, reported a remarkable 46% year-on-year surge in retail sales for the third fiscal quarter concluding on December 31, 2023. This impressive growth was attributed to a combination of rebounding tourism and a substantial upswing in gold prices.
The surge in retail sales signifies the sustained recovery of visitor traffic following the reopening of borders, surpassing pre-pandemic levels by an impressive 40%. The comprehensive reopening of borders connecting Hong Kong, Macau, and mainland China played a pivotal role in revitalizing the market. Notably, same-store sales for gold products exhibited a remarkable 80% growth, even in the face of a 14% annual increase in the average international gold price.
In specific regions, Luk Fook experienced substantial spikes in retail sales, with Hong Kong, Macau, and mainland China witnessing impressive increases of 97%, 37%, and 18%, respectively. Correspondingly, same-store sales in these regions demonstrated robust growth. In Hong Kong and Macau, same-store sales for gold products surged by an impressive 94%, driven by the escalating gold prices leading to higher-value transactions.
The product categories of fixed-price gold jewelry and diamond-set jewelry witnessed noteworthy increases of 88% and 25%, respectively. In mainland China, same-store sales for gold products increased by 22%, with fixed-priced gold jewelry exhibiting a commendable 23% rise, partially mitigating a 35% decline in diamond-set jewelry.
The surge in Luk Fook’s sales underscores the dynamic interplay between the rise in gold values and the resurgence of tourism, positioning the company for continued success in the evolving market landscape.
