Luk Fook Holdings (International) Ltd’s sales plunged 57 per cent in the fourth quarter of the financial year ending March 31 as buyers avoided shopping districts amid virus-led lockdown policies and restrictions.

The company reported that gold jewellery sales dipped 51 per cent while those of gem-set goods were down 64 per cent during the period in review.

Hong Kong and Macau recorded an overall decline of 60 per cent, with Lukfook shops in Macau mostly closed in February and March. Stores in Hong Kong have reopened since, but foot traffic remains low. 

Sales in China meanwhile saw a decline of 41 per cent, owing to store closures in February and lacklustre business for shops, which have resumed operations in March. 

Business in China however has improved in the first two weeks of April on the back of the gradual recovery of industrial, consumption and investment activities, according to Lukfook. 

“Hong Kong and Macau has not shown obvious signs of recovery due to a substantial decline in the number of visitors as compared with the same period last year,” it continued.

As of March 31, the group has a total of 2,120 shops globally, including self-operated and licensed stores as well as boutiques of its other brands. Since most of the new shops were opened before the outbreak, Lukfook said its expansion plan for FY2020 was not seriously affected. “The net shop addition for the full year was 287 shops, slightly below the target of 300 shops,” the company said.