Luk Fook’s revenue slumps due to high gold prices and weak demand

Amid a surge in gold prices and weak consumer demand, the Hong Kong-based jewellery chain Luk Fook reports the closure of 175 of its 3,500-plus retail jewellery stores and a 27 per cent slump in its half-year revenue.

Luk Fook said the sharp rise in gold prices of 23 per cent during the six months affected consumer sentiment, resulting in a 24 per cent drop in the sales of gold and platinum products, resulting in an overall same stores sales drop of 34 per cent.

In March, Luk Fook reported a 28 per cent increase in revenue, driven by a post-Covid influx of tourists.