Luk Fook Sales Rise in First Quarter

RAPAPORT... Luk Fook's sales soared 118% in the first fiscal quarter amid the relaxation of border restrictions and an economic rebound.Total same-store sales - at Luk Fook outlets open for more than a year - in Hong Kong and Macau surged 111% in the three months ending June 30, the company said last week. Same-store sales of gold priced by weight jumped 106%, while purchases of fixed-price jewelry climbed 108%.The recovery reflects a favorable comparison with the same period a year ago, when the Hong Kong luxury market, which relies largely on tourists from China, was heavily affected by border restrictions that required visitors to quarantine for two weeks. The municipality has since relaxed those rules, with tourism increasing from its near standstill in 2020, the company noted.Meanwhile, overall same-store sales in mainland China grew 124% for the April-to-June period. Revenue from gold products tripled, and fixed-price jewelry sales rose 29%.Hong Kong-based Luk Fook opened a net 84 shops on the mainland during the quarter, bringing the global total to 2,450. That includes 146 self-operated locations, of which 78 were in mainland China, 46 in Hong Kong, 13 in Macau and nine in other locations. The retailer also has 2,223 licensed shops and 81 other brands, including Goldstyle and Dear Q.Image: A Luk Fook store in Hong Kong. (Hpalsgm)