Luk Fook Thrives on Tourism and Gold Surge
July 02, 24
(IDEX Online) - Luk Fook, the Hong Kong-based chain of over 3,500 retail jewelry stores, reported a hike in revenue and gross profit, driven by a post-Covid influx of tourists and soaring gold prices.
Revenue for the year to 31 March was $1.96bn (HKD 15.3bn), a 28 per cent increase on the previous year. Gross profit was up 29.2 per cent to $534m (HKD 4.2bn).
Sales were up 52 per cent to $1.29bn (HKD 10.04bn) in Hong Kong and Macau but down 2 per cent in China to $677 million (HKD 5.29bn).
The company said growth was mainly driven by the sale of gold products, with lower gross margins than fixed price jewelry.
Demand for diamond products remained subdued in Mainland China, it said, and it would actively be promoting non-diamond fixed price jewelry.
"Following the borders reopening amongst Hong Kong, Macau and the Mainland early last year, the retail sentiment has shown continuous improvement," said Luk Fook in its Annual Results.
During the year the company, which operates across Hong Kong, Macau, Mainland, Malaysia, Cambodia, the Philippines, Laos, Thailand, the United States, Canada and Australia, grew by 478 stores to 3,583.