Morning Bites

💍Luk Fook’s 3Q23 LFL sales jumped 36% YoY in the gem-set, platinum and K-gold jewellery segment (vs. +54% YoY in 2Q23). Specifically, sales in the gem-set segment in Mainland China were down 20% YoY. Meanwhile, HK and Macau sales surged 52% YoY (>20% drop vs. 2019, on our numbers), after the border with Mainland China was reopened in early-2023 (in August, 4.1mn visitors arrived in HK vs. <60k a year ago)

Despite jewellery sales showing a YoY recovery, they remain well below the 2019 levels (-17% vs 3Q19). Hence, we keep our cautious outlook on the diamond sector globally, given the weak demand in the key downstream regions (the US and China account for 53% and 12% of the global gem-set jewellery trade, respectively)

#diamonds   
https://metals-wire.com/sector/Diamonds