Hong Kong retailer Luk Fook Holdings (International) Ltd reported steady growth in sales of fixed-price gold jewellery in its fourth fiscal quarter amid soaring gold prices.

The company said retail sales for the quarter ending March 31, 2025 outperformed those from the previous three quarters in all regions, with China exhibiting growth in revenue and same-store sales.

Overall retail sales value and retail revenue remained flat at 2 per cent and 1 per cent, respectively. Same-store-sales, meanwhile, was down 10 per cent during the quarter.

According to Lukfook, the average gold price per ounce rose 38 per cent year on year in Q4, resulting in a 17 per cent decline in same-store sales of gold products.

However, same-store sales of fixed-price jewellery products have been on an upward trajectory since December 2024, improving significantly to above 12 per cent in the fourth quarter. 

“Same-store sales of fixed-price gold products already turned positive in Q2 and still grew by 79 per cent in Q4 despite a high base, demonstrating the group’s successful strategy of gradually replacing diamond products with other fixed-price products, particularly fixed-price gold products,” noted Lukfook.

In the first week of April this year, overall same-store sales were already showing further improvement, with a double-digit increase in China and a single-digit uptick in the Hong Kong and Macau markets.

Lukfook also expects “a better performance" in the second half of fiscal year 2025 compared to the first six months, supported by further market improvements. Increased gold hedging losses in the second half, however, could dent full-year performance, explained the company.

Sales of gold products could resume to normal levels once consumers have adapted to high gold prices, the jeweller added. 

“Moreover, despite the sustained weak demand for diamond products, the group will continue to actively promote non-diamond fixed-price jewellery products following the success of a strategy to gradually replace diamond products with fixed-price gold products,” it noted.