Hong Kong Jewelers See Revenue Spike

RAPAPORT... Sales rose sharply at Chow Tai Fook and Luk Fook in the second fiscal quarter, boosted by strong consumer demand,the lower price of gold, and tourism.Retail sales at Chow Tai Fook jumped 25% year on year inHong Kong and Macau in the three months ending September 30, while same-store sales- at branches open for at least year - surged 23%, the Hong Kong-based jeweler reportedThursday. Mainland retail sales increased 15%, with same-store sales up 6%.Same-store sales only include shops Chow Tai Fook operates itself, as opposedto franchises. "[The] Hong Kong and Macau market recorded...impressive growthduring the quarter, benefiting from...buoyant consumer spending and resilientmainland visitation," Chow Tai Fook said. Chow Tai Fook's gold sales in Hong Kong and Macau leaped 41% on asame-store basis, and 11% in mainland China. Gold revenue improved due to a higher average weight per product sold, the company noted. Sales of gem-set jewelry fell 2% in Hong Kong and Macau, andinched up 1% on the mainland. Meanwhile, overall same-store sales at Luk Fook - which is also headquartered in Hong Kong - grew 14% yearon year in the second quarter. Sales rose 17% in Hong Kong and Macau, with results in mainland Chinaimproving 4%. Gold sales in Hong Kong and Macau surged 30% at Luk Fook, buoyedby the lower price of the metal, the company said. In mainland China, salesremained flat. Sales of gem-set jewelry at Luk Fook climbed 4% in HongKong, and 18% on the mainland.  Image: A Luk Fook store in Hong Kong. (Carlo Villarice)