Luk Fook Holdings (International) Ltd. has issued a profit warning for the fiscal year ending March 31, 2025 (FY2025). The company anticipates a decrease in profit by approximately 40% compared to the previous year. This decline is mainly due to widening gold hedging losses caused by rising gold prices and a high base effect from last year's one-off gains following the acquisition of 3DG Holdings (International) Limited. However, when excluding the impact of gold hedging losses, the profit decline is expected to narrow to below 20%, and further to below 10% if last year's one-off gains are also excluded from comparison. Despite the projected profit decline, Luk Fook Holdings reported a continuous improvement in same-store sales from April to May 2025, attributed to effective branding and product differentiation strategies. The Mainland market experienced double-digit growth in same-store sales, while the Hong Kong and Macau market remained flat. The company is optimistic about the remaining months of FY2025/26, expecting business performance to improve with ongoing optimization of its fixed price jewelry product mix and a strengthening Mainland market. Shareholders and potential investors are advised to exercise caution when dealing with the company's shares, as the financial data is based on unaudited management accounts and subject to further review. The company plans to publish its annual results announcement on June 26, 2025.
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