FAST NEWS: Merger drives Luk Fook’s fourth-quarter sales growth
The Latest: Luk Fook Holding (International) Ltd. (1361.HK) said on Thursday its retail revenue in the fourth quarter of its fiscal year through March rose 12% year-on-year, exceeding the figure for the same pre-pandemic quarter of 2019 by 10%.
Looking Up: The jewelry chain’s Mainland China quarterly retail revenue increased by 7% year-on-year, while Hong Kong and Macau also increased by 10%.
Take Note: The company said that record gold prices in March and geopolitical tensions have affected consumer purchasing sentiment. It added that the declining value of China’s currency, the yuan, led to a sales slowdown in March.
Digging Deeper: Luk Fook is mainly engaged in the design and sale of gold and platinum jewelry. It was established in 1991 and went public in 1997. The company completed its acquisition of the 3D-GOLD brand from HK Resources (2882.HK) earlier this year, which help to boost its revenue in its latest reporting quarter. The company also added a net 230 stores in the latest quarter, 218 of which were under the 3D-GOLD brand.
Market Reaction: Luk Fook shares opened slightly lower on Friday and closed down 4.2% at HK$17.7 by the midday break. The stock now trades at the lower end of its 52-week range.
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