Jewelry Giant Luk Fook: Profit to Drop by a Third

Finance and Trade
16/06/2016 07:17

Luk Fook warns that its profit for the past fiscal year which ended on March 31 is likely to drop by 35 to 45 percent as a result of reduced spending by tourists from mainland China. The strength of the Hong Kong dollar against China's renminbi is also putting Chinese visitors off buying, along with an economic slowdown in the mainland and a rise in the popularity of other tourist destinations. Luk Fook’s warning follows that of its main competitor, Hong Kong-based jeweler Chow Tai Fook, which has already reported that profit plunged 46 percent during the same period.