Chinese jewellery retail giant Luk Fook Holdings (International) Limited announced its impressive retail sales performance for the first quarter (Q1) of the financial year ending on 31st March, 2024. The results, covering the period from 1st April to 30th June 2023, reflect a robust recovery and positive growth in key markets.
With the reopening of borders and the resurgence of consumer confidence, Luk Fook experienced a significant upswing in its retail sales. The Group achieved an exceptional overall Same Store Sales (SSS) growth of 62% in Q1 FY2024 compared to the same period last year. This remarkable performance was primarily driven by the recovery of the Hong Kong and Macau markets, along with a favourable low base effect.
In Hong Kong and Macau, where tourist traffic improved steadily, Luk Fook’s SSS growth reached an impressive 75% in Q1. Macau showcased remarkable growth with an SSS increase of 90%, while Hong Kong recorded a notable SSS growth of 70%.
Although the overall performance of Hong Kong and Macau remained broadly flat compared to pre-pandemic levels, the SSS of gold products surged by 81%. The Mainland China market exhibited a slower recovery in consumption sentiment compared to Hong Kong and Macau. Notably, Luk Fook’s e-commerce business in Mainland China recorded a sales growth of 40% during the quarter.
Looking ahead, Luk Fook remains optimistic about its future performance. The Group aims to mitigate the impact of soft demand for diamond products by actively promoting non-diamond fixed-price jewellery, particularly fixed-price gold products, in Mainland China.
With the ongoing recovery of the tourism industry and local demand in Hong Kong and Macau, coupled with the low base effect, Luk Fook expects a strong business growth momentum in these markets. The Group is optimistic about surpassing its FY2019 performance in the current financial year.