Rapaport News



Rapaport Broadcast
Martin Rapaport’s Webinar on Estate Jewelry
October 30 2019

Advanced search
Latest Articles
Rough Markets
Polished Markets

Hong Kong Troubles Weigh on Luk Fook

Revenue falls 20% in fiscal first half.
Dec 1, 2019 9:59 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Luk Fook’s sales fell 20% in the first fiscal half amid uncertainty in the Hong Kong market and the rising price of gold.

Total sales dropped to HKD 6.31 billion ($805.5 million) in the six months ending September 30. Profit for the period slipped 26% to HKD 497.3 million ($63.5 million).

Same-store sales — at Luk Fook outlets open for more than a year — in Hong Kong and Macau slid 25% in the six months ending September 30, excluding franchises. Same-store gold sales plunged 34%, while gem-set jewelry purchases declined 10%. 

The decline was the “result of a relatively high base, strong gold prices, and the continuing impact of Hong Kong social incidents and [the] US-China trade war on market sentiment,” the company noted. “Consumption expenditure per capita in the Hong Kong and Macau market has been weakening, [causing a] substantial decline in the number of visitors to Hong Kong. The overall retail atmosphere has been weakening continuously in recent months.”

Overall same-store sales in mainland China slipped 16%, with revenue from gold products falling 17%, and gem-set jewelry dropping 12%.

The number of visitor arrivals in Hong Kong decreased considerably in July, August and September, with numbers down 5%, 39% and 34% for each month, respectively. In the first half of the year, arrivals increased 14%, according to the Hong Kong Tourism Board.

At the end of the first half, Luk Fook had 210 self-operated stores, of which 136 were in mainland China, 51 in Hong Kong, 12 in Macau, and 11 in other locations. The retailer also has 1,747 licensed shops.

Image: A Luk Fook store in Hong Kong. (Luk Fook)
Tags: Hong Kong Tourism Board, Luk Fook, Rapaport News, US-China trade war
Similar Articles
EnzoChow Tai Fook Buys Chinese Retailer Enzo
Jan 19, 2020
Chow Tai Fook has acquired Enzo Jewelry, a colored-gemstone brand...
Robust Jewelry Sales Boost Richemont
Signet Raises Forecast Following Strong Holiday
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First

Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
twitter twitter
About Rapaport
Advertise with us