Lao Pu Gold Posts 27.3 Billion Yuan in Revenue — How Far Is It From Hermès?

Two Earnings Reports in One Day: Lao Pu Gold Delivers a Blockbuster Scorecard

Lao Pu Gold released two sets of financial data on the same day that left its peers green with envy, delivering what can only be described as a phenomenal annual report.

For the full year 2025, Lao Pu Gold posted total sales of 31.375 billion yuan, a 220.3% year-over-year increase, and revenue of 27.303 billion yuan, up 221%. On a non-IFRS basis, the company's adjusted net profit reached 5.029 billion yuan, a 234.9% surge. Triple-digit growth rates like these are almost unheard of against the backdrop of today's consumer market.

Store Efficiency Tops the Charts, With Average Annual Sales Exceeding 500 Million Yuan Per Location

The company attributed its explosive performance to three factors: first, the continued expansion of brand influence, which has established a commanding market advantage; second, product innovation and optimization driving overall online and offline revenue growth; and third, the expansion of its store network.

Over the past year, Lao Pu Gold operated 45 self-owned stores across 16 cities, including "overseas" locations in Singapore and Hong Kong. Compared with 2024, the addition of 10 new stores and the renovation and expansion of 9 existing ones contributed significant incremental revenue to the group.

Based on offline store sales of 25.793 billion yuan for the year, Lao Pu Gold's average annual sales per store exceeded 500 million yuan. Citing data from Frost & Sullivan, the earnings report noted that among global luxury brands, Lao Pu Gold ranked second in mainland China by revenue and first in per-store and per-square-meter sales efficiency within individual shopping malls.

High Customer Overlap, but the Brand Moat Still Lags Behind

The consumer profile data is perhaps even more noteworthy. According to the figures, Lao Pu Gold's customer overlap with five major luxury brands — including Louis Vuitton, Hermès, and Cartier — rose from 77.3% in July of last year to 82.4% in March of this year. This means that more than 80% of Lao Pu Gold's buyers are also customers of top-tier luxury houses.

However, customer overlap does not equal brand equivalence. Hermès reported global revenue exceeding 15 billion euros (approximately 120 billion yuan) for fiscal year 2024, and its brand premium is built on centuries of cultural heritage, a globalized distribution network, and an ultra-scarcity product strategy. While Lao Pu Gold has shown formidable strength in the Chinese market, its global expansion has barely taken its first step. The cultural depth of its brand narrative, the breadth of its product lines, and the independent brand value that would remain after stripping away gold's intrinsic commodity appeal all remain unproven.

The Ultimate Test of Luxury: The Ability to Survive Market Cycles

From a financial standpoint, Lao Pu Gold is undeniably the most dazzling dark horse in China's consumer sector in recent years. But the true moat of a luxury brand has never been about revenue scale alone — it is about the ability to maintain pricing power and customer loyalty through economic cycles.

Gold prices have been on a sustained upward trajectory, and consumers' perception of gold jewelry as both an investment and a consumer good has created a powerful tailwind for Lao Pu Gold's hyper-growth. Should gold prices enter a correction cycle, whether the brand can sustain its current growth momentum will become the critical test of whether it possesses "Hermès-level" brand power.

Moreover, can the "small but beautiful" model of 45 stores generating 27.3 billion yuan in revenue be sustained? Will expanding the store count dilute the brand's scarcity and premium positioning? These are questions that only time can answer.

Outlook: From Chinese Phenomenon to Global Brand — A Long Road Ahead

The rise of Lao Pu Gold reflects Chinese consumers' growing appreciation for homegrown premium brands and validates the interim success of its differentiated strategy combining "heritage gold craftsmanship with luxury brand operations." But to go from being the "second-highest revenue earner in mainland China" to a truly global luxury brand, Lao Pu Gold must cross not just geographic borders but also build deep cultural foundations for its brand.

As industry observers have noted, Lao Pu Gold currently resembles a "super channel brand" — one that has precisely captured the consumption preferences of China's high-net-worth population but has yet to establish the kind of cross-border, cross-category brand devotion that Hermès commands. This journey is destined to require much more time and far greater patience.