Luk Fook Group, one of Hong Kong's leading jewelry retailers, has announced a massive 36.8% surge in annual profit, driven by recovering consumer confidence in Hong Kong and Macau. The group reported an impressive HKD 1.76 billion (USD 222.28 million) in profit for the fiscal year ending March 31, 2024, with total revenue up 28% to HKD 15.32 billion (USD 1.96 billion).
Golden Growth Amid Market Recovery
The star of the show? Gold sales! As the retail market bounced back, particularly in Hong Kong and Macau, Luk Fook's sales of gold and platinum products skyrocketed by 50.7% to HKD 10.37 billion (USD 1.32 billion). Gold is still shining bright, making up 72.6% of overall sales, compared to just 63% last year. The group's net profit margin also rose to 11.5%, up 0.8 percentage points from the previous year.
The group's total store count also expanded significantly, with 478 new stores added globally. Now boasting 3,583 stores across Hong Kong, Macau, Mainland China, Malaysia, Cambodia, the Philippines, Laos, Thailand, the U.S., Canada, and Australia, Luk Fook is taking the world by storm!
Diamonds Struggle as Gold Steals the Spotlight
While gold was on fire, fixed-price jewelry, including diamonds, faced challenges. Sales of fixed-price jewelry fell 3.1% to HKD 3.91 billion (USD 500.46 million), largely due to declining demand for diamond products—especially in Mainland China. The company noted that gold remains highly attractive, with per-ounce prices rising by 10.2% year-on-year.
With diamond demand remaining sluggish in Mainland China, Luk Fook is focusing on promoting non-diamond jewelry products. As consumers adjust to rising gold prices, the company expects sales to stabilize, with hopes for further growth as the macroeconomic environment improves.
Expanding Horizons—Luk Fook's Global Ambitions
Luk Fook isn't just betting on gold—they’re expanding their global footprint. With plans to open around 15 more stores internationally by 2025, the jewelry giant sees massive growth potential in overseas markets.
"The group remains optimistic about the mid-to-long-term business outlook in Mainland China and is determined to further expand the local market. We also see tremendous opportunities for growth in overseas markets," said Luk Fook in a statement.
Is Gold the New Diamond for Jewelry Lovers?
With consumers flocking to gold, Luk Fook is cashing in on a winning formula, proving that gold is truly the new darling of the jewelry market. From rapid store expansion to a surge in gold sales, Luk Fook's golden strategy is shining bright—and the jewelry giant shows no signs of slowing down.