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.
