Hong Kong jeweler Luk Fook is expecting its profit for fiscal 2026 to increase by up to 90%.

While the company has yet to finalize the results for the 12-month period, which ended March 31, it has attributed the estimated growth largely to higher margins from rising gold prices.

The expected 80% to 90% increase is also the result of an effective strategy whereby the company revamped its product offering and sales strategy for fixed-price jewelry products, it said Wednesday.

The rise “is mainly attributable to the improved profit margin due to the rise in gold prices, the effective product differentiation and sales strategies that boosted the sales mix of fixed-price jewelry products and the operating leverage, which together contributed to a substantial increase in overall prices,” Luk Fook explained.

Recently, retailers have been reporting that consumers have become more accepting of rising gold prices and more willing to spend on the yellow metal. That compares with the same period a year ago, when Luk Fook reported profit would be down 40% due to increased gold prices.

Luk Fook will release its full results on June 25.