Gold and gem-set jewellery made a comeback in the first quarter of the year, reversing the trend from the previous quarter, according to the sales performance results published by luxury jewellery retailer Luk Fook, published on the Hong Kong Stock Exchange.
Across the board increases were seen overall and specifically in the group’s Mainland China segment, with double digit increases in both gold and jewellery for the Mainland. The Macau and Hong Kong segment followed the trend, levelling negative same store sales growth in the fourth quarter of last year into 0 per cent growth in gold and gold (by weight) sales. Overall for the SARs an increase was seen in gem-set jewellery, at a 9 per cent year-on-year uptick, however still 3 per cent lower than the growth seen in the sales of the luxury good in the previous quarter. The SARs saw a 3 per cent year-on-year rise in same store sales growth, as compared to 23 per cent overall growth in the Mainland – with a 32 per cent increase in gold, 26 per cent in gold (by weight) and 10 per cent in gem-set jewellery. Across the board results for the sales saw an overall of 5 per cent in sales, with 5 per cent rises in both gold and gold (by weight) sales, and a 9 per cent uptick in gem-set jewellery sales (however, a 2 per cent drop from the previous semester).
During the quarter in question the group closed two of its stores in Hong Kong, however for the rest of the year ‘the number of shops in Hong Kong and Macau […] is expected to be around the same’.
Luk Fook as at end-June operated 10 locations in the MSAR, and 45 in the HKSAR, with 142 self-operated in the Mainland. In total, through licencing agreements the group totalled 1,508 shops as at end-June, a 12-shop increase from the previous quarter.
The value of gold imported into the MSAR during the first quarter of the year reached MOP1.59 billion, a 22.2 per cent increase from the same quarter of 2016, however a 7 per cent slowdown when compared to the previous quarter, corresponding with the holiday period, in which MOP1.71 billion in gold was imported into the MSAR, according to data from the Statistics and Census Service. In addition retail sales of watches, clocks and jewellery during the period saw a 23 per cent uptick year-on-year during the quarter and a 14.95 per cent uptick quarter-to-quarter in sales, reaching MOP3.84 billion.

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