Luk Fook’s overall same-store sales fell 71% last quarter, Hong Kong and Macau markets fell 76%

Financial News

Written by: Zhang Weilun

2020-07-21 19:31

Luk Fook Group (0590) announced operating data for the first fiscal quarter as of the end of June this year. Overall same-store sales fell 71% year-on-year, of which same-store sales of gold products fell 67%, and same-store sales of fixed-price jewelry fell 77% year-on-year.

Luk Fook further pointed out that the same store sales in Hong Kong and Macau markets fell 76% during the period, and the same store sales of gold and fixed-price jewelry fell 72% and 81% year-on-year respectively.

In terms of mainland business, same-store sales in self-operated stores fell 40% year-on-year, among which gold fell 45% and fixed-price jewelry fell 32% year-on-year. In terms of brand stores, overall same-store sales fell 19%, while gold and fixed price Shouqian fell 28% and 12% year-on-year respectively.

Sales have improved in June

However, the company pointed out that after entering June, the retail atmosphere in the Hong Kong and Mainland markets has gradually improved. The overall same-store sales decline in self-operated stores narrowed from 76% in April and May to 58% in June.

Luk Fook pointed out that even if the situation in Macau has not improved in June, the retail atmosphere in the Hong Kong market has gradually improved. Therefore, the same-store sales decline in the Hong Kong and Macau markets has narrowed to 52% from 82% in April and May. Throughout the quarter, retail sales fell 78% year-on-year.

In terms of mainland business, most stores have resumed operations during the quarter, and customer purchase intentions have gradually picked up and recorded a smaller decline than the Hong Kong and Macau markets. Luk Fook self-operated stores in the Mainland fell 40% year-on-year, while same-store sales growth of gold products and priced jewelry products fell 45% and 32% year-on-year. Same-store sales dropped 43% from April and May this year, and improved to 32%.

Lukfook pointed out that compared with self-operated stores in North China and Central China, where most of the stores are located in the more serious areas of North China and Central China, Lukfook brand stores, which account for about 95%, experienced a year-on-year decrease of 19% in same-store sales during the quarter. Among them, gold products and priced jewelry The same-store sales of products fell 28% and 12%, respectively. The same-store sales of branded stores fell 22% from April and May this year, and gradually improved to minus 13% in June.

Overall, including self-operated stores and branded stores, retail sales during the quarter fell 14% year-on-year.

Plans to add 150 Luk Fook stores in the Mainland

Luk Fook pointed out that as of the end of June, Luk Fook had 178 self-operated stores and 1,879 brand stores worldwide. Together with 66 other brands, there were 2,123 stores worldwide.

Lukfook said that it will take time for mainland tourists to visit Hong Kong and the retail atmosphere to recover. In the current financial year, it will reduce 5 Hong Kong stores, but will look for opportunities to increase 2 Macau stores. In the Mainland, the target net growth increase is not less than 150 Lukfook stores. And 50 new product shops, mainly brand shops.

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