Date
22 August 2017
Luk Fook says its sales climbed during the first week of October despite the civic disturbance in Hong Kong. Photo: Bloomberg
Luk Fook says its sales climbed during the first week of October despite the civic disturbance in Hong Kong. Photo: Bloomberg

Luk Fook holds its shine during Golden Week

Jewelry vendor Luk Fook Holdings International Ltd. (00590.HK) said its overall sales in Hong Kong and Macau rose during the Chinese National Day holiday period, bucking the weakness seen at many other retailers.

While several retailers saw their business get affected by the street protests in Hong Kong, Luk Fook said it managed to post 3 percent growth in same-store sales during the week-long Chinese holiday period, the Hong Kong Economic Journal reported Thursday.

Sales of gold rose 13 percent during the period, thanks to the drop in price of the yellow metal, the company said.

Chan So Kuen, Luk Fook’s chief financial officer and company secretary, was quoted as saying in a post-results conference call that sales were not affected much by street protests as most of its stores were outside the area occupied by pro-democracy demonstrators.

Although the few outlets that were located near the protest zone saw their sales fall between 20 and 30 percent, it was offset as customers moved to other stores in unaffected areas, Chan said, adding that sales in some stores rose as much as 50 percent.

In the mainland, Luk Fook’s same-store sales jumped 28 percent during the so-called Golden week.

For the fiscal second quarter ended September, the company’s same-store sales, including those overseas, fell 21 percent as a whole, compared to a 54 percent drop in the previous quarter. Sales in Hong Kong/Macau and in the mainland fell 20 and 30 percent respectively during the period.

Meanwhile, competitor Chow Tai Fook Jewellery Group suffered a 10 percent slide in sales in the three months to September. Overall same-store sales fell 20 percent, with those in Hong Kong, Macau and other Asian markets down 29 percent, while those in the mainland registered a 12 percent drop.

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