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Luk Fook's 1H Revenue +70%, Profit +72%
Dec 1, 2013 7:28 AM
By Deena Taylor
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RAPAPORT... Hong Kong-based jeweler Luk Fook Holdings reported that revenue rose 70 percent year on year to $1.3 billion (HKD 10.06 billion) in the six months that ended on September 30. Group profit jumped 72 percent to $124.5 million (HKD 965.5 million).
The surge in revenue was driven by strong sales of gold products, which the company noted was a favorite item among customers that, together with platinum, accounted for 72 percent of the group's total sales. Gold sales were triggered by a large drop in gold prices in April and again in June. Gem-set jewelry products accounted for 28 percent of total sales.
Luk Fook’s retail sales in Hong Kong, Macau and overseas accounted for the majority of revenue and rose 82 percent year on year to $1.11 billion (HKD 8.64 billion). The company’s wholesale division experienced a sales increase of 16 percent to $141.9 million (HKD 1.10 billion). Sales from its licensee partners rose 3 percent to $41.6 million (HKD 323 million).
The group's overall same-store sales growth grew 62 percent. Same-store sales in Hong Kong rose 58 percent and 96 percent in Macau. Gold and platinum product same-store sales soared 87 percent, while same-store sales for gem set jewelry products rose 16 percent.
At the close of the six month period, Luk Fook operated 135 retail stores under the brand name Lukfook Jewellery and 1,053 licensee shops. The group opened its first flagship store in Wuhan in Mainland China and its largest flagship store worldwide in Macau.
Additionally, the group signed a memorandum of understanding with Hong Kong Resources Holdings (HKRH) to buy a 50 percent stake in its fully owned subsidiary, China Gold Silver Group (CGS), for $38.8 million (HKD 301 million).
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Tags:
Deena Taylor, gold, Jewelry, Luk Fook Holdings, Lukfook Jewellery
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