Luk Fook Estimates Revenue Jump for Fiscal First Half

Hong Kong jeweler Luk Fook is expecting to report a revenue and profit spike for the first half of the fiscal year, it said in an update.

Although the company has not yet finalized the results for the period, which ended September 30, it anticipates seeing sales rise by 20% to 30% year on year, the jeweler said last week. The favorable result mainly stemmed from effective product differentiation and sales strategies that generated strong growth in the fixed-price jewelry category, it explained.

Furthermore, profit soared 40% to 50% year on year, the group estimated. This was largely a result of improved profit margins from rising gold prices, an increase in the sales mix in fixed-price jewelry products, and higher “operating leverage” — a measure of how revenue translates into operating income. 

The jeweler plans to publish its full report on November 27.

Image: A Luk Fook store in Hong Kong. (Shutterstock)