Hong Kong jeweler Luk Fook is expecting its profits for fiscal 2025 to be down 40%.
While the company has yet to finalize the results for the 12-month period, which ended March 31, it has attributed the estimated decline largely to the effects of spiking gold prices.
Without “the impact of gold-hedging losses,” the jeweler said Wednesday, “the decline in profit for the year would narrow to below 20%.”
Another factor it cited was the one-off surge in profit it saw in the previous fiscal year following its acquisition of holding company 3DG Holdings and its subsidiaries. Last year’s profit came to HKD 1.76 billion ($225.1 million), a 37% increase from fiscal 2023.
So far, same-store sales for the current fiscal year have shown “continuous improvement due to effective branding and product differentiation strategies,” the company added. From April to May, “same-store sales in the mainland market saw double-digit growth, while the Hong Kong and Macau market remained flat.”
Luk Fook forecast that “the group’s business performance may improve for the remaining months [of this year].”
The company will release its full results later this month.
Image: A Luk Fook store in Shenzhen, China. (Shutterstock)
