Hong Kong jewellery retailer Luk Fook has announced the key findings of its latest financial report, detailing substantial sales increases amid the recovery of tourism in Asia.
Sales increased by 30 per cent on a year-on-year comparison for the six months ending 30 September. Profit increased by approximately 40 per cent during the same period.
The statement attributed these remarkable increases to the return of tourism to the region and improving consumer sentiment.
“This is mainly attributable to continuous improvement in sentiment in the retail markets of Hong Kong and Macau, following the full reopening of borders,” the statement reads.
“The Group’s performance was further enhanced by a higher overall gross margin due to a much-increased mix of retailing revenue and improved total operating expenses to revenue ratio.”
Luk Fook identified the popularity of gold jewellery as crucial to these sales, as well as strong performance from higher-priced products.
Sales for retail rival Chow Tai Fook increased by six per cent during the first half of the financial year. Luk Fook operates more than 3,000 stores in China and Hong Kong.
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