Luk Fook Holdings Reports Revenue Decline Amid High Gold Prices

Luk Fook Holdings (International) ( (LKFLF) ) has released its Q4 earnings. Here is a breakdown of the information Luk Fook Holdings (International) presented to its investors.

Luk Fook Holdings (International) Limited is a company engaged in the sourcing, designing, wholesaling, trademark licensing, and retailing of gold, platinum, and gem-set jewelry, operating primarily in the jewelry industry with a global presence.

In its latest earnings report for the year ended March 31, 2025, Luk Fook Holdings reported a 12.9% decline in revenue to HK$13.3 billion, attributed mainly to decreased sales of gold products due to high gold prices. Despite this, the company saw a 5.8% increase in gross profit to HK$4.42 billion, benefiting from the same rise in gold prices which improved their gross profit margin by 5.9 percentage points to 33.1%.

Key financial metrics revealed a significant impact from gold hedging losses amounting to HK$493 million, contributing to a 39.3% decrease in profit for the year to HK$1.07 billion. The operating profit also fell by 33.3% to HK$1.41 billion, with a corresponding decline in operating margin. The company proposed a final dividend of HK$0.55 per share, bringing the annual dividend to HK$1.10 per share.

The company experienced a net decrease of 296 shops globally, but saw improvement in same-store sales in the Mainland market, which grew by nearly 20%. Despite challenges, the company continues to focus on effective branding and product differentiation strategies.

Looking ahead, Luk Fook Holdings remains cautiously optimistic, aiming to navigate the challenges posed by high gold prices and geopolitical tensions, while leveraging its multi-brand strategy to cater to diverse customer needs across its global network.