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Luk Fook's FY Revenue +43%, Profit +50%
Jun 26, 2014 7:52 AM
By Deena Taylor
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RAPAPORT... Hong Kong-based jeweler Luk Fook Holdings reported that revenue rose 43 percent year on year to $2.478 billion (HKD 19.214 billion) in the fiscal year that ended on March 31, 2014. Group profit grew by 49.8 percent to $240.8 million (HKD 1.867 billion). Growth was given a strong boost from tourist purchases in Hong Kong and a surge in gold product sales.
Luk Fook’s retail business continued to be the main sales driver for the group as sales jumped 48 percent to $2.085 billion (HKD 16.163 billion), accounting for 84 percent of total revenue. Luk Fook's wholesale business rose 20 percent to $313.7 million (HKD 2.432 billion).
By product category, gold and platinum products remained the favorite items among customers as sales rose 53.6 percent, contributing 67.2 percent of the total. Sales of gem-set jewelry products, meanwhile, rose 26 percent during the year and accounted for 33 percent of total sales.
Same-store sales growth for gold and platinum during the year was 36 percent, while comparable-store sales growth for gem-set jewelry was 4.8 percent, compared with 3.3 percent one year ago.
During the year, the group opened 186 new doors, of which 181 were licensee shops. At the close of its fiscal year, Luk Fook had a total of 1,268 stores globally across Mainland China, Hong Kong, Macau, Singapore, the U.S., Canada and Australia.
The company's management cautioned investors on the outlook for the current fiscal year, explaining that macro economic uncertainties in the near term will pressure growth. But the company remained optimistic about mid- to long-term business development, which will be stimulated by rising consumption and economic growth in China.
On June 6, Luk Fook completed its acquisition of a 50 percent interest in China Gold Silver Group Company Limited, kick starting the group's dual brand strategy.
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Tags:
Deena Taylor, jewellery, Jewelry, Luk Fook Holdings, Lukfook Jewellery
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