Luk Fook's Q1 retail sales jumps 19pc, sees more mainlanders buying gold in HK, Macau

Luk Fook Holdings (International) (0590) posted a 19 percent growth in retail sales value last quarter, up from a 2 percent contraction a year ago. 

The pace, however, was slower than the December quarter, when the jeweler recorded a 26 percent year-on-year rise. 

Retailing revenue for the first quarter rose 36 percent, compared to a 17 percent increase in the fourth quarter and a 1 percent decline in the prior year.

Same store sales jumped by 33 percent, with Hong Kong’s figure up by 44 percent, Macau’s by 34 percent, and overseas market by 25 percent.

Following the implementation of the new value-added tax policies on gold in the mainland, the widened product price differential between the two SARs and the mainland has attracted more consumers to purchase gold products in the two places, thereby benefitting retail performance in the two markets, it said.