Jeweler's sales plunge 10pc

Business | Stella Zhai and Reuters 19 Jul 2019

Another retailer saw a drop in business in the second quarter in Hong Kong, with Luk Fook (0590) reporting that same-store sales fell 10 percent for the quarter from April 1 to June 30, with Hong Kong and Macau falling 10 percent and mainland falling 7 percent.

This compared with same-store sales growing 26 percent for the same period last year.

The jeweler's same-store sales of gold products fell by 19 percent, while sales of gem-set jewelry products grew four percent.

Cosmetic retailer Sa Sa (0178) had last week said its retail and wholesale turnover for the same quarter fell 10.8 percent to HK$1.89 billion, with political unrest hurting its business.

Meanwhile, strong mainland demand helped Cartier-owner Richemont offset a weaker performance elsewhere in its first quarter, as protests in Hong Kong hit sales, revenues fell in Europe and its watch business faltered.

The group relies on jewelry for the bulk of sales, with brands that also include Van Cleef & Arpels.

The retailer recorded a two percent year-on-year drop in its watch sales in the three months to ended June, lower than a three-percent expectation.

Sales at Richemont's jewelry brands rose seven percent, however, and the group said that the mainland had more broadly proved a bright spot, mirroring trends across the broader luxury goods industry.

Sales in Hong Kong retreated, additionally impacted by the relative strength of the Hong Kong dollar and the recent street protests, it said.

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