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Luk Fook Sees Annual Profit Tumbling
Jun 15, 2016 10:20 AM
By Rapaport News
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RAPAPORT... Luk Fook warned profit for the past fiscal year likely slumped
35 to 45 percent because of lower spending by tourists from mainland China.
Visitors to Hong Kong cut spending because of a stronger
Hong Kong dollar relative to the Renminbi, the jewelry retailer said. Other
factors behind the expected slide include an economic slowdown in the mainland
and an increase in the popularity of other tourist destinations. These elements
are expected to have weighed down the company’s revenue in the 12 months that
ended March 31, said the Hong Kong-based company said.
The company’s gross margin for gem-set jewelry is tipped to
decline and the ratio of expenses to revenue probably increased, while losses
in investments related to Hong Kong Resources Holdings Company Ltd and its
subsidiaries likely grew. Results for the fiscal year will be published June
23.
Luk Fook’s warning comes after Chow Tai Fook,
another Hong Kong-based jeweler, reported profit plummeted
46 percent during the same period.
Image: Hpalsgm |
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Tags:
China, Hong Kong, Luk Fook, Rapaport News, retail
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