Luk Fook’s Revenue and Profit Set to Soar

Revenue and profit grew at Hong Kong jeweler Luk Fook in the first fiscal half thanks to the recovery of tourism and a return to positive consumer sentiment, the company said in a preliminary report last week.

Sales increased by more than 30% year on year for the six months that ended September 30, while profit rose by more than 40%, management estimated.

“This is mainly attributable to continuous improvement in sentiment in the retail markets of Hong Kong…and Macau, following the full reopening of borders” with mainland China, the company stated.

The renewed popularity of gold also benefited the retailer, as did sales of higher-priced items, it explained.

The projected boost outpaces those of other Hong Kong-based jewelers. Retail sales at Chow Tai Fook grew 6% year on year for the first fiscal half, while profit rose 36%. Last week, Tse Sui Luen reported an 8% sales increase for the six months, compared to the same period a year ago. However, the company posted a net loss of HKD 58.3 million ($7.5 million) versus a profit of HKD 1.8 million ($230,000) in 2022’s first fiscal half.

Luk Fook expects to report its full results on November 29.