0590.HK

The Latest: Jeweler Luk Fook Holdings (International) Ltd. (1361.HK) said on Thursday its retailing revenue in the second quarter of its fiscal year through September fell 25% year-on-year, citing a high base effect from the year-ago period and slumping demand due to record high gold prices.

Looking Up: At the end of September, the jeweler had 3,408 stores worldwide, a net reduction of 76 from the end of June, as it closed poorly performing locations to reduce operating costs.

Take Note: The company’s same-store sales plunged 35% during the period, with Hong Kong and Macau down 38% and Mainland China down 29%.

Digging Deeper: A designer and seller of gold and platinum jewelry, Luk Fook was established in 1991 and went public in 1997. It completed its acquisition of the 3D-Gold brand from HK Resources (2882.HK) earlier this year, bringing 218 3D-Gold stores under its umbrella, which helped to boost its revenue by 12% year-on-year in its fourth fiscal quarter March. The company pointed out that demand for diamond-based products has been weak lately, prompting it to promote other products to improve its performance.

Market Reaction: Luk Fook shares opened slightly higher on Friday and closed up 1.4% at HK$14.95 by the midday break. The stock now trades at the lower end of its 52-week range.

Translation by A. Au

To subscribe to Bamboo Works weekly free newsletter, click here

Recent Articles

BitFuFu posts strong revenue growth

BitFuFu makes big gains as cryptocurrency booms

Revenue for the provider of digital mining services jumped 47.5% in the third quarter on strong gains for its core cloud-mining services, as well as its self-mining business Key Takeaways:…