Luk Fook Sales Drop Due to Trade War

RAPAPORT... Luk Fook's same-store sales decreased 10% year on year inthe first fiscal quarter amid an unfavorable comparison with last year and the impact of the US-Chinatariff war. Total same-store sales - at Luk Fook outlets open for morethan a year - in Hong Kong and Macau dropped 10% in the three months ending June 30. Same-store gold sales plunged 20%, while gem-set jewelry purchasesgrew 6%. Although the average selling price for gem-set items declined by adouble-digit figure, this was offset by a large increase in sales volume, thecompany said Monday. The figures are for shops it operates itself, but exclude franchises. Overall same-store sales in mainland China slipped 7%, withrevenue from gold products falling 4% and gem-set jewelry dropping 7%. The figures look weak in comparison with the equivalent period last year, when same-store sales increased 22%. Luk Fook also noted "the continuing impact of [the] US-China trade war on market sentiment." At the end of the quarter, Luk Fook had 208 self-operatedstores, of which 139 were in mainland China, 47 in Hong Kong, 11 in Macau and11 in other locations. The retailer also has 1,653 licensed shops. Image: A Luk Fook store in Hong Kong. (Luk Fook)