Gold Spike Bumps Up First-Quarter Sales at Luk Fook

Revenue at Hong Kong jeweler Luk Fook rose in the first fiscal quarter as consumers continued to purchase gold as an investment, even amid a strong jump in the price of the yellow metal.

Retail sales value – at self-operated and licensed shops and on e-commerce platforms – rose 32% year on year in the quarter that ended June 30, the jeweler said last week. Overall sales soared 41% in Hong Kong and Macau and 22% in China. Same-store sales – at self-operated shops that were open a year earlier – increased 39% for the group, surging 41% for Hong Kong and Macau and 16% on the mainland.

Total same-store sales of diamond products fell 17% year on year in the first fiscal quarter. Sales from the category slipped 16% in Hong Kong and Macau and plunged 58% in China. Meanwhile, gold continued on an upward trend, with overall same-store sales spiking 50%. In Hong Kong and Macau, sales of gold products rose 55%, and in Chine, 21%.

“Although gold prices have been volatile, consumers have gradually adapted to the high gold price environment, and therefore [they] did not have a significant impact on sales,” the jeweler said. “Following the implementation of the new gold value-added tax policy [on the] mainland, the price differential between the Hong Kong and Macau market and the mainland market has widened, attracting more consumers to purchase gold jewelry in Hong Kong and Macau.”

During the three months from April to June, Luk Fook further strengthened its international footprint by reentering the Singapore market with the opening of a self-operated store and launching a new licensed shop in Vietnam. The group closed a net 148 locations during the period, bringing its global count to 2,857 as of June 30.

“Geopolitical risks remain elevated and there are no clear signs of improvement in the mainland macroeconomic environment,” Luk Fook added. “The central government is making concerted efforts to stimulate domestic consumption and has introduced various policies to support the property and capital markets. The group therefore remains cautiously optimistic about its medium-to-long-term business prospects in the mainland and will continue to expand in the mainland market at appropriate junctures.”

Furthermore, the group forecast growth opportunities in the overseas market and will increase investment in its international presence, with plans to add two new countries and a net increase of 30 overseas stores in fiscal 2026/27.  

Image: A Luk Fook store in China. (Shutterstock)