t to HK$14.746 billion for FY25. Yet a closer look reveals a more complex and less reassuring picture. Even as the value of their merchandise climbed, revenue fell. Store networks shrank. Foot traffic stagnated. Behind the glitter lies a retail sector quietly recalibrating for a new era: one where Chinese consumers, younger and more price-conscious, are no longer buying into gold jewellery the way their parents once did. The gold paradox The industry bellwether CTF saw its revenue decline 17.5 per cent to HK$89.7 billion even as operating profit rose 9.8 per cent in FY25. Luk Fook’s results told a similar story with full-year revenue falling 12.9 per cent to HK$13.3 billion and profit plunging 39.3 per cent to HK$1 billion, hurt by gold hedging losses and one-off effects. TSL, meanwhile, remained deep in the red, with sales down 35.5 per cent and losses totalling nearly HK$200 million. It closed more stores, breached bank covenants and has yet to prove its turnaround plan can work Once their greatest strength, all three brands are shrinking their physical footprints.  CTF closed a net 905 stores this year, most of them in Mainland China, bringing its network to 6644 points of sale. Luk Fook shuttered 296 locations. TSL continues a slower but relentless contraction of its domestic footprint. In a reversal of years of rapid expansion, the retailers are trading scale for selectivity, focusing on high-performing locations and betting on fewer, larger, more immersive “image stores” to drive productivity.  Reinvention or relapse? CTF appears to be the only player making a convincing case for reinvention. Its brand transformation strategy includes premium flagship stores, youth-targeted collections and culturally inspired collaborations, including IP tie-ups with Chiikawa and Black Myth: Wukong. Its fixed-price ‘Rouge’ and ‘Palace Museum’ collections each generated HK$4 billion in sales.  Even pet jewellery has become part of the portfolio. “We extended our product differentiation into exclusive collaborations with renowned intellectual property owners that resonate strongly with our younger customers, and at the same time enhancing the group’s high jewellery lines to meet the rising demand for exclusivity among high-value customers,” Cheng Kar Shun, chairman of CTF Group, said in a statement.  “We will continue to expand our diverse product portfolio by raising the level of brand aspiration across a wider range of audiences to enhance long-term business resilience and sustainability.”  Luk Fook has adopted a quieter version of this strategy, experimenting with sub-brands and product upgrades. Its main challenge remains operational: closing underperforming stores, offsetting hedging losses and maintaining relevance beyond gold’s intrinsic value. TSL, for now, is playing catch-up. It has leaned into 24K gold, but it lacks CTF’s scale or Luk Fook’s diversification to mount a credible transformation. With a thinning equity base and persistent losses, its survival depends on whether it can stabilise cash flows and win back a shrinking mid-market audience. The way forward? Luk Fook still has options. Its multi-brand strategy, deeper Mainland reach and relatively healthy balance sheet give it the flexibility to adapt. The company has also leaned into licensing and consulting income, more stable, less capital-intensive revenue streams. “The group sees significant growth potential in the overseas market and will allocate more resources to expand its footprint across the world, including new shop openings,” Luk Fook said in its statement.  Currently, the group’s footprint spans 11 countries and regions, with a goal to enter at least three additional countries and net add 50 new overseas shops within the next three years. TSL’s future is far less certain. Its losses are narrowing but still significant and it has limited room to manoeuvre.  However, CTF has read the room. By leaning into heritage-infused narratives, leveraging digital tools and launching capsule collections that evoke emotional as well as economic value, the company is positioning itself for a new kind of loyalty.  “Although macro challenges persist, shifting consumer behaviours and evolving market landscapes are presenting fresh opportunities across the region,” Cheng said.  “Looking beyond, we are actively exploring new growth opportunities in Southeast Asia amongst other markets.” Further reading: Can Luckin Coffee take on Starbucks in its own backyard?