Trading brightens for Luk Fook Holdings

Jeweller Luk Fook Holdings (International) reports a turnround to positive growth in its same-store sales for its third quarter, ended December 31.

With a relatively low base, the same-store sales growth for the period recorded a “substantially narrowing decline” of 10 per cent from 37 per cent in the second quarter.

Since September, same-store sales of gemset jewellery products in Mainland China have achieved double-digit growth for four consecutive months.

Luk Fook’s same-store sales for the quarter turned into a positive growth of 20 per cent from a decline in the previous two quarters. Together with the 2 per cent growth of same-store sales in gold products, mainland sales for the quarter started to see positive growth (5 per cent) for the first time in the current fiscal year.

The group ended the quarter with 11 new shops – nine in Mainland China and two in Kuala Lumpur. However, it closed an outlet in Macau.

There was also an increase in its licensed shops in China, with 28 at the end of December. There were 195 own-brand shops – 129 in China, 47 in Hong Kong, 10 in Macau and nine in other countries.

Together with 1297 licensed shops in China and one in Korea, there were 1493 Lukfook outlets worldwide, of which 1426 shops were in China.