Hong Kong Retail Recovery Boosts Luk Fook Q3 Profits

Jewellery giant Luk Fook Holdings says its interim net profit increased slightly by 0.6% year-over-year to $84 million USD (HK$658 million) for the six-month period ending September 30, mainly due to a recovery of retail business in Hong Kong, which was most notably offset by a 21% drop in wholesale revenue on mainland China.
The retailing business remained the group's primary source of revenue, which benefited from declining gold prices and recovery of retail sentiment in some regions.

Luk Fook’s same-store sales of gold — priced by weight at international market rates — grew 62% year on year during the quarter. The precious metal’s value has tanked in dollar terms since March amid the appreciation of the US currency.
With the HK Government loosening Covid-19 restrictions, the months of October and November continue to be profitable (year-over-year) for the company with same-store sales growing by 20%.

Retailing revenue jumped by 10.6 percent year-on-year to $495 million USD (HK$3.87 billion), accounting for 69.5 percent of the total revenue. Considering this, an interim dividend of 55 HK cents-per-share was proposed by the Luk Fook Board of Directors to company shareholders.

Sources: Luk Fook & The Standard HK
Photo Credit: Luk Fook Holdings