Luk Fook Holdings (00590) reported a 6% yearly decrease in overall retail value and a 9% yearly decrease in retail revenue in the third quarter.

LUK FOOK HOLD (00590) announced the retail sales performance for the third quarter of the fiscal year ending March 31, 2025, with overall retail value (including self-operated stores, brand stores, and e-commerce business) declining by 6% year-on-year. Overall retail revenue (including self-operated stores and e-commerce business) also decreased by 9%. The group's overall same-store sales for the quarter were -22%. The average international gold price during the quarter increased by 34% year-on-year, and the high gold price weakened consumer sentiment, leading to a 26% decrease in same-store sales of gold products. Despite this, sales of priced jewelry products continued to improve during the quarter, with same-store sales narrowing from -24% in the previous quarter to -7%, with same-store sales of priced gold products showing a 58% growth even with a high base, while diamond product sales were -46%. It can be seen that the group's strategy of gradually replacing diamond products with other priced products, especially priced gold products, is gradually taking effect. In the third quarter, overall retail revenues in the Hong Kong and Macau markets saw a 20% year-on-year decline, with same-store sales at -24%, including a -17% decline in same-store sales in Hong Kong and -40% in Macau. In addition, same-store sales of gold products in the Hong Kong and Macau markets were -29%, while priced jewelry products were -9%, with priced gold products at +62% and diamond products at -47%. Despite facing high base numbers and high gold prices, the mainland market has shown significant improvement, with overall retail value (including self-operated stores, brand stores, and e-commerce business) narrowing its year-on-year decline to 2% in the third quarter. The retail values of gold and priced jewelry products dropped by 1% and 5% respectively, with a 12% increase in retail value of priced gold products within the priced jewelry products, while diamond products dropped by 34%. Retail revenue in the mainland (sales amount including self-operated stores and e-commerce business) also reversed the downward trend of the previous two quarters, increasing by 27% year-on-year, with sales for the e-commerce business in the mainland turning around and rising by nearly 20% year-on-year in the third quarter. Same-store sales at self-operated stores in the mainland were -11%, with same-store sales of gold products at -12% and priced jewelry products at -1%. Same-store sales at self-operated stores in the mainland in December also turned from a decline to being flat, which is encouraging. Brand stores, accounting for over 91% of the total number of stores in the mainland, saw an 8% decline in same-store sales during the quarter, with both gold products and priced jewelry products decreasing by 8%, priced gold products increasing by 8%, and diamond products decreasing by 36%. As of December 31, 2024, the group had a total of 3,343 stores worldwide, with a net decrease of 65 stores in the third quarter, a milder decline compared to the previous two quarters. The group has a total of 154 self-operated "LUKFOOK" stores globally, including 73 in the mainland, 50 in Hong Kong, 17 in Macau, and 14 overseas. As of the above date, along with 2,681 mainland and 12 overseas branded stores, the group has a total of 2,847 "LUKFOOK" stores worldwide. In addition, the group has a total of 101 self-operated "T MARK" stores globally, including 93 in the mainland, 7 in Hong Kong, and 1 in Macau. As of the above date, along with 139 mainland and 1 overseas branded store, this group has a total of 241 "T MARK" stores worldwide. The announcement states that the group sees significant growth potential in overseas markets and plans to invest more resources in actively expanding overseas markets. The group also plans to net add approximately 15 stores in overseas markets in the current fiscal year. As the comparison base in the second half of the fiscal year is lower than the first half, the group expects better business performance in the second half of the fiscal year.