BRIEF: Luk Fook’s profit jumps on rising gold prices, sales strategy
Jewelry retailer Luk Fook Holdings (International) Ltd. (0590.HK) on Thursday forecast it would report its revenue rose 20% to 30% year-on-year in the six months through September, the first half of its fiscal year, while its profit jumped 40% to 50% during that time.
Last year’s results of HK$5.45 billion （$6.99 million） in revenue and HK$417 million in profit for the six-month period implies the company will report revenue between HK$6.54 billion and HK$7.09 billion in this year’s period, with profit ranging from HK$580 million to HK$675 million.
The company attributed the revenue growth primarily to its product differentiation and sales strategies, driving a significant increase in jewelry prices. The profit increase owed largely to rising gold prices, a higher sales mix of priced jewelry products, and margin expansion.
Shares of Luk Fook opened flat at HK$25 on Friday. The stock is up 74% from its 52-week high.
By Lau Chi Hang
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