Hong Kong retailer Luk Fook Holdings (International) Ltd recorded solid retail sales growth in the first fiscal quarter, buoyed by robust gains in both mainland China and Hong Kong.

Overall retail sales value and retail revenue rose 13 per cent and 14 per cent year on year, respectively, from April to June 2025, a marked turnaround from the subdued end of the prior fiscal year.

Lukfook attributed the sales improvement across all markets to effective branding and product differentiation strategies.

“Although the spike in gold prices may affect sales performance, an increase in profit margin will help mitigate the impact of the decline in sales. Recent business improvements indicate that consumers are gradually adapting to high gold prices, suggesting a potential normalisation of gold sales,” the company stated. 

Diamond category sales have also improved, prompting Lukfook to adjust its product and promotional strategies to enhance the performance of its diamond jewellery pieces, it added.

Mainland China stood out as a growth driver for the company, with retail sales value and retail revenue rising by 14 per cent and 31 per cent year on year, respectively. Same-store sales in this market jumped 19 per cent, indicating sustained demand despite industry headwinds. 

Hong Kong, Macau and overseas markets, meanwhile, recorded a 9 per cent increase in retail sales value, with same-store sales rebounding from a 12 per cent decline in the previous quarter to a 3 per cent increase. The overseas segment was particularly notable, posting a growth rate of nearly 20 per cent.

Lukfook highlighted the solid performance of fixed-price gold products, which grew 73 per cent year on year, driving an increase in their share of overall sales mix. Moving forward, the company will “actively promote” fixed-price gold products and fixed-price diamond-set pure gold products.

“The US tariff policies continue to impact the global economy and heightened tensions in China-US relations,” Lukfook added. “The mainland government has been actively forming a ‘dual circulation’ strategic layout, which vigorously boosts domestic demand. The Group remains cautiously optimistic about its medium- and long-term business prospects in the mainland and will continue to expand in the mainland market in the future.” 

The retailer closed 125 stores in the first fiscal quarter, leaving it with 3,162 stores worldwide as of June 30, 2025. It plans to add approximately 20 more stores in overseas markets in this financial year.