Luk Fook Annual Results Show 41% Tumble in Profits
June 26, 16
(IDEX Online News) – Gold, platinum and gem-set jewelry retailer and wholesaler Luk Fook announced that its fiscal 2016 profits plummeted to HK$959 million ($123.5 million) – a 40.6-percent decline.
The company’s revenue also dropped, falling by 11.9 percent to HK$14 billion ($1.8 billion), as revenues from Hong Kong slipped to HK$8.21 billion ($1.06 billion) in the 2016 fiscal year ended March 31 compared to HK$9.51 billion ($1.23 billion) in 2015.
Tourism to Hong Kong has been affected by various factors, including fewer visitors from mainland China and the strength of the US dollar. Destinations such as Japan and South Korea have increased in popularity, and the lack of tourists has contributed to squeezed profits.
Earlier in June, rival Hong Kong-based jewelry retailer Chow Tai Fook announced that the Chinese economic slowdown had hit its luxury sales as its full-year profits showed a 46-percent decrease.