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Luk Fook Revenue +47% in Fiscal 2012
Jul 5, 2012 3:05 AM
By Avi Krawitz
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RAPAPORT... Luk Fook Holdings, a Hong Kong-based jeweler, reported that revenue rose 47 percent year on year to $1.54 billion (HKD 11.91 billion) in the year that ended on March 31, 2012. Group profit grew 54 percent to $173.7 million (HKD 1.35 billion). Sales were driven by the company’s expansion in Mainland China and from an influx of tourists buying in Hong Kong.
Retail business accounted for the surge in the group’s performance owing to rising demand for luxury products from Mainland visitors holding appreciating renminbi along with aspirations of purchasing high-quality gold and jewelry items in Hong Kong, according to Luk Fook.
Luk Fook’s retail sales in Hong Kong, Macau and overseas accounted for the majority of revenue and rose 49 percent year on year to $1.15 billion (HKD 8.92 billion), while sales from Mainland China increased 64 percent to $96 million (HKD 744.1 million). The company’s wholesale division experienced a sales increase of 33 percent to $233.8 million (HKD 1.81 billion). Sales from its licensee partners rose 55 percent to $55 million (HKD 426.7 million)
At the close of its fiscal year, Luk Fook had 103 owned retail stores under the brand name Lukfook Jewellery and 758 licensee shops.
The company's management offered some caution for the current fiscal year due to global economic uncertainties but it maintained that China’s economy would remain stable, stimulated by rising consumption.
Demand for luxury and jewelry products, particularly from tourists from Mainland China, has remained robust due to the wealth effect from stable economic growth in Greater China, increasing disposable income and urbanization, giving a strong support to retail sales market, Luk Fook stated. The group’s approach to retail expansion is aggressive yet prudent, according to the firm, as it expects to increase the number of retail outlets in cities with lower brand penetration and explore various market opportunities so as to increase its market share.
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Tags:
Avi Krawitz, jewellery, Jewelry, Luk Fook Holdings, Lukfook Jewellery, Rapaport
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