Gold jewellery by Chow Tai Fook
Hong Kong-based jewellery retailers are seeing initial signs of improvement in China despite reporting lacklustre sales in its major markets during the first quarter of their respective fiscal years due to Covid-19.
Chow Tai Fook Jewellery Group Ltd’s unaudited results in Q1 of fiscal year 2020 ending June 30 showed that overall sales in China were up 0.1 per cent as business there gradually resumed while those in Hong Kong and Macau saw a 69 per cent decline.
Same-store sales in China fell by 11.2 per cent during the period in review compared to a 75.5 per cent plunge in Hong Kong and Macau.
Luk Fook Holdings (International) Ltd’s same-store sales in the first quarter of fiscal year ending March 31, 2021 meanwhile declined by 71 per cent. Overall sales of self-operated shops have since narrowed from 76 per cent in April and May to 58 per cent in June with recovering retail sentiment in Hong Kong and Macau.
Same-store sales in Hong Kong and Macau during the quarter were down 78 per cent year on year due to ongoing border restrictions. Those in China decreased by 14 per cent as most shops resumed operations alongside improvements in consumer sentiment.
According to Chow Tai Fook, volatile gold price dragged down sales of gold jewellery during the quarter.
Sales of gem-set jewellery pieces and gold products in China dropped by 6.6 per cent and 19.8 per cent, respectively. Hong Kong and Macau also saw a 65.7 per cent dip in gem-set jewellery sales while demand for gold items were down 82.9 per cent due to weak consumer traffic.
Lukfook’s sales of gold products also sank by 67 per cent, representing a contraction of 45 per cent in China and 72 per cent in Hong Kong and Macau.