Hong Kong jewelry giant Luk Fook is bracing for a massive 📉 40% plunge in profits for fiscal year 2025.
The company hasn’t finalized the numbers yet (year ending March 31), but they blame soaring 🥇 gold prices for the major hit. Without losses from gold-hedging, the drop would have been under 20%, they noted.
Another reason? Last year’s profits got a huge boost 🚀 from their acquisition of 3DG Holdings. That year, profits hit HKD 1.76 billion ($225.1M)—a 37% jump from the previous year.
Still, there’s hope. The company says same-store sales this year are already seeing "continuous improvement" thanks to branding and product differentiation strategies. From April to May, sales in mainland China rose 📈 by double digits, while Hong Kong and Macau stayed steady.
Luk Fook remains cautiously optimistic: “Performance may improve in the remaining months.”
📆 Final results drop later this month.