LUK FOOK HOLD (00590.HK): Q2 Retail Value Up 8%, Hong Kong and Macau Same-Store Sales Up 13%

NewTimeSpace News: On 22 October 2026, Luk Fook Holdings (International) Limited (the "Company") announced its retail sales performance for the second quarter of the financial year ending 31 March 2027, covering the period from 1 July 2026 to 30 September 2026. Despite a higher base, the Group's overall retail value (including self-operated stores, brand stores and e-commerce business), retail revenue (including self-operated stores and e-commerce business) and same-store sales for the second quarter rose 8%, 23% and 12% year on year respectively; the retail value contribution of gold and platinum products rose 5 percentage points year on year to 83% on the back of substantial growth in investment gold product sales, with fixed-price jewellery accounting for 17%.

The announcement disclosed that the Group's overall same-store sales for the second quarter were +12%, with gold products at +22% (same-store sales volume of weight-based products at -2%) and fixed-price jewellery at -12% on a high base, of which fixed-price gold products were -8%. During the quarter, the international average gold price (per ounce in US dollars) rose 23% year on year, while the average RMB-to-HK dollar exchange rate rose about 8% year on year.

The Company stated that, in the Hong Kong and Macau markets, both retail value and retail revenue rose 17% year on year in the second quarter, with same-store sales at +13%, of which Hong Kong was +10% and Macau +19%; gold product same-store sales were +24%, while fixed-price jewellery was -13% on a high base. The performance of the Hong Kong and Macau markets was mainly driven by their product price advantage over the mainland market and the appreciation of the RMB, which boosted mainland visitor traffic and business. In the mainland market, second-quarter retail value fell 2% year on year (gold product retail value rose 4% while fixed-price jewellery fell 24%), retail revenue still rose 28% year on year on a high base, and e-commerce business sales also rose 28%; overall same-store sales were +3%, with self-operated stores at +3% and brand stores, which account for about 90% of the total number of stores in the mainland, at +1%. In other markets, second-quarter retail value and retail revenue rose 25% and 24% year on year respectively, with same-store sales at +14%, mainly driven by the Group's continued expansion of its international business footprint and active opening of new stores.

The Company stated that during the quarter it entered the European market for the first time by opening one self-operated store in London and, together with Singapore entered in the first quarter, has expanded into two new countries in the first half of the financial year, achieving its full-year target ahead of schedule; the Group also opened its first brand store in the Taiwan region of China during the quarter, and net opened five stores in other markets in the second quarter, located in London, the Taiwan region of China, Kuala Lumpur in Malaysia, Singapore and Ho Chi Minh City in Vietnam. However, as the Group continued to optimise and consolidate its brand store network in tier-four and tier-five cities in the mainland, its global store count recorded a net decrease of 69 during the quarter, giving a total of 2,788 stores worldwide as at 30 September 2026, of which 2,325 are Lukfook Jewellery stores and 272 are Goldstyle stores. On outlook, as the price gap between the Hong Kong and Macau markets and the mainland market widened following the implementation of the new mainland gold value-added tax policy, same-store sales in the Hong Kong and Macau market were +15% during the period from 1 to 7 October 2026, reaching +39% for self-operated stores in the mainland market, while other markets and mainland brand stores were flat; the Group said it remains cautiously optimistic about the medium- and long-term business prospects in the mainland and is confident of achieving a net increase of 30 stores in other markets for the full year.