Hong Kong-listed jeweller Luk Fook Holdings has posted double-digit declines in revenue and same-store sales for the first quarter amid record-high gold prices.

For the three months ended June 30, the group’s retail sales value (RSV) fell 18 per cent year on year, including a 13 per cent decrease in Mainland China and a 31 per cent dip in Hong Kong and Macau. 

Overall retailing revenue, including self-operated shops and e-commerce business, dropped 23 per cent, with Hong Kong and Macau down 31 per cent and Mainland China down 3 per cent.

Same-store sales plummeted 34 per cent, with a 36 per cent drop in Hong Kong and Macau and a 24 per cent decrease on the mainland.

The retailer attributed the declines to gold prices reaching new highs amid the increase in central banks’ gold reserves and ongoing worldwide geopolitical tensions. The high prices have weakened consumer sentiment, affecting the sales of gold products.

The group expects the sales of the gold products to resume to normal levels after consumers adapt to the new prices. The retailer will continue to promote non-diamond fixed-price jewellery products amid high gold prices and subdue demand for diamonds.

As of June 30, Luk Fook had 3484 shops worldwide, with a net reduction of 99 locations during the first quarter. 

Given the growth potential of the overseas markets, the jeweller is planning to allocate more resources to expand its footprint across the world, with a net addition of approximately 15 shops this year.