Luk Fook Sales Jump as Economy Reopens

RAPAPORT... Luk Fook's same-store sales rose 30% in the fourth fiscal quarter amid the recovery of the Chinese economy following Covid-19 closures.In mainland China, same-store sales - at self-operated branches open for at least a year - leaped 93% year on year for the three months ending March 31, the jeweler said last week. The surge was due to a favorable comparison with the same period in 2020, when businesses closed because of the coronavirus pandemic. The waning price of gold, as well as improved consumer sentiment, also bolstered sales. Same-store sales grew approximately 30% versus the fourth quarter of 2019.Same-store gold sales jumped 110% on the mainland in the fourth quarter of 2020, while fixed-price jewelry was up 62%. Revenue from e-commerce rose 43%.In Hong Kong and Macau, same-store sales climbed 19% year on year, as the authorities relaxed the border restrictions. However, same-store sales dropped relative to the same period in 2019, as some restrictions remained in place and tourism had not fully recovered, the company noted. Same-store sales of gold products advanced 28%, with fixed-price jewelry seeing 9% growth.Luk Fook opened a net 45 stores on the mainland during the quarter, bringing its regional total to 2,366 stores as of March 31. The jeweler believes sales will continue to rise thanks to the introduction of vaccines and improved consumer sentiment, primarily on the mainland, it said.Image: A Luk Fook store in China. (Luk Fook)