Hong Kong jewellery company Luk Fook Holdings published the results of the 2023-2024 financial year that ended on March 31 and reported a 28% increase in revenue. The retail chain, which has over 3,500 jewellery stores, earned $1.96 billion over the year. Gross profit increased by 29.2% to $534 million.
Sales rose 52% to $1.29 billion (HK$10.04 billion) in Hong Kong and Macau, but fell 2% in China to $677 million.
The company explained that the growth is mainly attributed to the influx of tourists following the opening of borders after the pandemic, and the sale of gold products, which have increased significantly in price. “Benefitting from the borders reopening amongst Hong Kong, Macau and the Mainland early last year and the low base effect as well as the outperforming gold sales, the Group’s retailing business achieved satisfactory results especially in the Hong Kong and Macau market”, he said. “Nevertheless, the Group’s business continues to encounter challenges from heightened geopolitical tensions and macroeconomic uncertainties.”
According to the company, despite rising gold prices, demand for gold jewellery remains high. Sales of gold and platinum products rose 50.7% to $1.33 billion, accounting for 72.6% of total sales. Last year this figure did not exceed 63.0%.
Diamond demand in mainland China continues to decline, and the country will actively promote non-diamond jewellery with a fixed price.
During the year, the company, which operates in Hong Kong, Macau, mainland China, Malaysia, Cambodia, the Philippines, Laos, Thailand, the US, Canada and Australia, opened 478 new stores, bringing its total number to 3,583.
Hélène Tarin, Editor-in-chief of the Asian Bureau, Rough&Polished
