Luk Fook Recovering, but Diamond Sales Still Weak
July 21, 25
(IDEX Online) - Luk Fook, China's third biggest jewelry retailer, reported a continued recovery for the three months to 30 June, but said diamond sales remained weak.
Same store sales on the Mainland were up 19 per cent across all sectors, but sales of diamonds fell 17 per cent year-on-year during 1Q FY2026.
The company did not provide specific revenue figures for diamond sales but noted a continued shift in consumer preference toward gold.
China is finally showing signs of economic recovery after the Covid pandemic, although spending on diamonds and high-end jewelry is still depressed.
The retail sales value (RSV) across the group was up 13 per cent (up 14 per cent in the Mainland, up 9 per cent in Hong Kong, Macau and overseas).
Luk Fook, which has 3,162 shops worldwide (the vast majority in China), said that while high gold prices might impact sales, improved profit margins and consumer adaptation to these prices are expected to support a tentative recovery.
In its Retail Sales Performance update, the company said it would "continue to actively promote fixed price gold products and fixed price diamond-set pure gold products.
"In light of the recent improvement in diamond product sales, the group will also adjust its product and promotional strategies to enhance the performance of diamond-set 18k gold products."