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Luk Fook Expects Boost in Full-Year Profit

June 25, 2024  |  Suzanne Watkin
Luk Fook store image

Profit will rise for the full fiscal year at Hong Kong jeweler Luk Fook amid a recovery in tourism and improved consumer sentiment.

Earnings will increase between 30% and 40% for the 12 months that ended March 31, exceeding HKD 1.7 billion ($217.7 million), the company said Monday. The growth is the result of a favorable comparison with the previous year, when tourism was still sluggish after the reopening of the border between Hong Kong and China at the start of 2023, the retailer explained.

A reassessment of the company’s assets following a purchase also buoyed income.

“[The rise] is attributable to the continuing improvement in retail sentiment following the border reopening…early last year, the low base effect, and the gain on a one-off remeasurement…after the acquisition of Hong Kong Resources,” the jeweler noted.

Last month, Luk Fook reported sales grew 5% in the fourth fiscal quarter. Contrary to Luk Fook’s expected profit jump, fellow Hong Kong jeweler Tse Sui Luen (TSL) said it would incur a loss of between HKD 370 million ($47.4 million) and HKD 380 million ($48.7 million) for the full fiscal year. The results are due to decreased demand for diamond jewelry in China, TSL said.

Luk Fook will publish its full results for the year on June 28.

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

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Luk Fook store image Luk Fook Expects Boost in Full-Year Profit

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