Luk Fook Annual Results Show 17% Drop in Profits
June 25, 15
(IDEX Online News) – Hong Kong-based jeweller Luk Fook reported that revenue for the year ended March 31 fell 17.1 percent to $2.05 billion (HK$ 15.92 billion), down from a 2014 high of $2.48 billion (HK$ 19.21 billion) and that gross profits fell 9 percent to $494 million (HK$ 3.83 billion).
Wong Wai Sheung, chairman and Chief Executive of the Hong Kong-based group said that there were various reasons for the Luk Fook’s results, including the gold sale rush during fiscal 2014, the challenging global economy, currency depreciation and the relaxation of visa requirements in other popular tourist destinations.
Mainland Chinese visitors remained the main drivers of for the Hong Kong retail business, but despite this, revenue in the sector dropped 20.4 percent) to $1.23 billion (HK$9.51 billion), down from $1.54 billion (HK$ 11.96 billion) in 2014. Macau’s results were similar and saw revenue decrease by 21.5 percent to $292 million (HK$ 2.26 billion).