Chow Tai Fook Jewellery Group Ltd and Luk Fook Holdings (International) Ltd reported strong sales in their first fiscal half ending September 30, 2023, on the back of improved inbound tourism with the progressive return of mainland tourists to Hong Kong.

Chow Tai Fook said overall sales grew 6.4 per cent year on year to HK$49.5 billion (around US$6.35 billion) during the first fiscal half of 2024. Growth was driven by Hong Kong, Macau and other markets, which recorded a 57.7 per cent increase.

Meanwhile, total sales at Luk Fook were up 34.3 per cent year on year to HK$7.5 billion (around US$961 million), with retail sales surging 55.7 per cent owing primarily to sales of gold products.

Both companies attributed their robust sales to improved mobility and retail activity across the mainland, Hong Kong and Macau after the borders were reopened, as well as positive consumer sentiment. 

Luk Fook noted that, despite the lacklustre macroeconomic conditions and a decline in SSS (same store sales) in the mainland market, the robust growth in the group’s e-commerce business helped offset its negative SSS growth.

Chow Tai Fook expected “FY2024 to be a year of gradual recovery and normality,” supported by government policies aimed at boosting domestic consumption in the mainland, Hong Kong and Macau. 

“We were encouraged to witness a steady recovery in our key markets, where jewellery industry sales outpaced overall retail sales growth in April to September 2023 in the mainland and Hong Kong. This underpins our confidence with the sustained recovery trajectory, and we expect SSS to resume growth in the mainland, Hong Kong and Macau,” Chow Tai Fook commented.

As of September 30, 2023, Chow Tai Fook has a global network of 7,838 points of sale, majority of which are in China. Luk Fook, meanwhile, has 3,289 shops globally.