China a Bright Spot as Luk Fook Sales Decline

Hong Kong: Luk Fook reported same-store sales fell 10 percent in the third fiscal quarter as a continued decline in its Hong Kong business outweighed improvements in mainland China.

Same-store sales slid 11 percent in Hong Kong versus a 5 percent increase in mainland China in the three months that ended December 31, the company said. Gold same-store sales dropped 11 percent across the group, while for gem-set jewelry the rate of decline was 4 percent. The figures only include retail sales at Luk Fook’s self-operated stores, which include 47 locations in Hong Kong, 10 in Macau and 129 in mainland China.

The drop in third-quarter sales was slower than that in the previous three months, when same-store sales had slumped 37 percent, with Hong Kong plummeting 39 percent and mainland China sales down 23 percent.

Luk Fook’s results mirror those reported by its peer Chow Tai Fook, which said market fundamentals stabilized after two years of double-digit declines.

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