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Tourism Boosts Luk Fook Results

Jun 28, 2018 7:34 AM   By Rapaport News
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RAPAPORT... Luk Fook’s profit and revenue rose in fiscal 2018, buoyed by increased tourism from mainland China, it said Wednesday.

The company’s profit climbed 33% to $174.6 million (HKD 1.37 billion) in the 12 months ending March 31, a higher rise than it expected. Revenue grew 14% to $1.86 billion (HKD 14.58 billion).

“With the improved overall economic environment and increased visitor arrivals in Hong Kong and Macau…, the business performance in the second half of the year was even better than [our] expectation,” the jewelry retailer said.

Revenue from Hong Kong edged up 7% to $943.9 million (HKD 7.41 billion), while sales from mainland China spiked 22% to $645.2 million (HKD 5.06 billion). Macau revenue grew 22% to $268.5 million (HKD 2.11 billion) for the same period.

Luk Fook is optimistic about fiscal 2019, as tourism to Hong Kong continues to increase. In 2017, visitors from mainland China increased 4% to 44.4 million, according to the Hong Kong Tourism Board. The number of tourists rose 13% to 12.2 million in the January-to-March period.

“Since April 2018, market sentiment [has] remained positive, especially for the Hong Kong and Macau market,” the company said. However, the potential US-China trade war could affect this outlook, it noted.

The retailer opened 137 new shops during the past fiscal year, including 132 in mainland China. The group had a total of 1,642 stores globally as of March 31.
Tags: Hong Kong Tourism Board, Luk Fook, Rapaport News
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