Sales increased by 28 per cent for the 12 months ending 31 March. Revenue increased in Hong Kong by 52 per cent; however, it declined in mainland China by 2 per cent.
In a statement, the company attributed the increase in sales to the return of tourism to the region. Profit increased by 37 per cent.
“Following the borders reopening amongst Hong Kong, Macau and the mainland early last year, the retail sentiment has shown continuous improvement,” the statement reads.
“Furthermore, leveraging the low base effect and the outperforming gold sales, the group’s retailing business achieved satisfactory results, especially in the Hong Kong and Macau markets.”
Gold and platinum jewellery sales increased by 51 per cent, accounting for 73 per cent of all sales. The statement said that despite the record-high price of gold, the company remained steadfast that consumer confidence would not be impacted long-term.
“Although the temporary spike in gold prices may affect sales performance, an increase in profit margin will help mitigate the impact of the decline in sales,” the company said.
“Sales of gold products are expected to resume to normal levels after consumers adapt to the high gold prices.”
Luk Fook also described the demand for diamond jewellery as ‘subdued’ in mainland China.
This mirrors reporting from retail rival Chow Tai Fook, which recently reported a 14 per cent increase in full-year sales.
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