BRIEF: Luk Fook Holdings fiscal year profit drops 40%
Jewelry retailer Luk Fook Holdings (International) Ltd. (0590.HK) announced on Tuesday that it expects to report its net profit fell by 40% year-on-year in its fiscal year through March 2025. The company reported a HK$1.77 billion ($225 million) profit in the previous fiscal year.
Luk Fook blamed the decline mostly on expanded gold hedging losses driven by surging gold prices, as well as a high base effect in the previous year caused by a large one-off gain related to an acquisition. Excluding the impact of gold hedging losses, the company’s adjusted profit would have fallen by a milder 20%. Excluding the one-off gain in the previous year, the decline would have further moderated to less than 10%.
Luk Fook added that its same-store sales continued to improve in April and May this year, citing more effective brand promotion and product differentiation strategies. Its Mainland China operation posted a double-digit increase in same-store sales during that time, while its Hong Kong and Macao markets remained roughly flat. The company said it expects better performance in the remaining months of the fiscal year.
Luk Fook shares opened lower and were down 2.91% at the midday break. The stock is up nearly 40% this year.
By Lee Shih Ta
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