Luk Fook Holdings (International) Ltd said profit in the first half of this year is likely to have dropped by as much as 40 percent as revenues and margins fell. Just last week, Chow Tai Fook Jewellery Group Ltd said its April-September fiscal half-year profit could have halved due to lower sales in Hong Kong and Macau. Retail sales in Hong Kong fell in September for a seventh straight month due to falling numbers of tourists from mainland China and weak consumer sentiment worsened by a volatile stock market during the summer.
Luk Fook Chairman Wong Wai-sheung said higher rents are also seen as contributing to the decline in the jeweler's results. Luk Fook, which posted first-half profit of $103.82 million last year, is due to announce earnings on November 26.