Surging Gold Values and Tourist Influx Propel Luk Fook Jewellery Sales to New Heights

Surging Gold Values and Tourist Influx Propel Luk Fook Jewellery Sales to New Heights

As gold prices rise and tourism flourishes, Luk Fook Jewellery sees significant sales growth, marking a pivotal moment for the brand

Luk Fook, the Hong Kong-based jeweller, witnessed a substantial 46% year-on-year growth in retail sales during the third fiscal quarter ending December 31, 2023, fueled by recovering tourism and a surge in gold prices. The increase reflects the ongoing resurgence in visitor traffic since the border reopening, with sales surpassing pre-pandemic levels by 40%. The complete reopening of borders among Hong Kong, Macau, and the mainland contributed to sustained market recovery, with overall same-store sales for gold products experiencing an impressive 80% growth, despite a 14% annual rise in the average international gold price. In Hong Kong, Macau, and mainland China, retail sales saw a remarkable spike of 97%, 37%, and 18%, respectively, with corresponding same-store sales demonstrating robust growth. Specifically, same-store sales of gold products surged by 94% in Hong Kong and Macau, driven by the increasing gold price leading to higher-value transactions. Fixed-price gold jewellery and diamond-set jewellery experienced noteworthy rises of 88% and 25%, respectively. In China, same-store sales of gold products increased by 22%, with fixed-priced gold jewellery up by 23%, partially offsetting a 35% decline in diamond-set jewellery.

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