Luk Fook Holdings (SEHK: 590) has announced its first-quarter results, revealing a 32% year-over-year increase in total retail sales value, which includes sales from self-operated stores, franchise stores, and e-commerce. Retail revenue, encompassing self-operated stores and e-commerce, saw an even stronger rise of 43%.
The proportion of retail sales value attributed to gold and platinum products increased by 6 percentage points year-on-year to 82%, driven by a significant surge in sales of investment gold items. The group's overall same-store sales growth for the quarter further improved to +39%.
Despite a 37% year-on-year increase in the average international gold price per ounce in US dollars, the same-store sales value for weight-based gold products expanded to +50%. The same-store sales weight for these products turned positive, reaching +13%.
Same-store sales for priced jewelry products were +14%. Within this category, priced gold products achieved a robust +34% despite a high base of comparison, while 18K gold and diamond products declined by 17%.
The company's operations in Hong Kong, Macau, and overseas markets continued their upward trajectory from the previous quarter, with retail sales value and retail revenue both increasing by 41% year-on-year. This performance was primarily supported by robust local demand in Hong Kong, coupled with favorable product price differentials and RMB appreciation in the Hong Kong and Macau markets, which boosted visitor traffic and business from mainland China.
Overall same-store sales in the Hong Kong, Macau, and overseas markets improved further to +41%. Hong Kong recorded same-store sales growth of +44%, Macau +49%, and overseas markets +14%.
In these regions, same-store sales for gold products continued their strong performance from the prior quarter, reaching +55%. Same-store sales for priced jewelry were +15%, with priced gold products achieving +35% despite a high base, while 18K gold and diamond products declined by 16%.
In the mainland China market, total retail sales value rose by 22% year-on-year. Retail sales value for gold products increased by 34%, while priced jewelry products fell by 15%. Within the priced jewelry segment, retail sales value for priced gold products decreased by 5%, and 18K gold and diamond products dropped by 56%.
Retail revenue in mainland China, which includes self-operated stores and e-commerce, grew by 41% year-on-year, outperforming the previous quarter despite a high comparative base. E-commerce sales in mainland China increased by 39%.
Overall same-store sales growth in mainland China, including both self-operated and franchise stores, exceeded 20%. Same-store sales for self-operated stores turned positive to +16%, compared to the previous quarter. Within these stores, same-store sales for gold products were +21%, while priced jewelry products declined by 7%. Priced gold products within this segment grew by +14%, and 18K gold and diamond products fell by 58%.
During the quarter, the group re-entered the Singapore market, opening a self-operated store to further expand its international footprint. Alongside a new franchise store opened in Vietnam, the group added a total of two new overseas stores in the first quarter.
However, due to the ongoing optimization and consolidation of its franchise store network in mainland China's fourth- and fifth-tier cities, the group experienced a net reduction of 148 stores globally during the quarter. As of June 30, 2026, the group operated a total of 2,857 stores worldwide.
The global network includes 157 "Luk Fook Jewellery" self-operated stores: 72 in mainland China, 48 in Hong Kong, 17 in Macau, and 20 overseas. As of the aforementioned date, combined with 2,204 franchise stores in mainland China and 29 overseas, the group operates a total of 2,390 "Luk Fook Jewellery" stores worldwide.
Additionally, the group operates 171 "Goldstyle" self-operated stores globally, comprising 165 in mainland China and 6 in Hong Kong. Together with 93 franchise stores in mainland China and 1 overseas, the group operates a total of 265 "Goldstyle" stores worldwide.
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