Hong Kong: Luk Fook has reported a jump in profit for fiscal 2017 and an improvement in consumer sentiment in mainland China.
The company’s profit grew 7% to $131.6 million (HKD 1.03 billion) in the 12 months ending March 31, the retailer said in its Thursday statement. And while revenue dropped 9% to $1.64 billion (HKD 12.81 billion), it was a gentler decline than last year’s 12% drop. Same-store sales slumped 18% for the year, but grew 2% in the fourth quarter as the regional economy started to improve.
Tourism to Hong Kong has lagged due to a slowdown in mainland China, with visitors tending to stay for shorter periods of time than they used to and spend less per person, Luk Fook chairman and CEO Wong Wai Sheung explained. “The situation, however, has started to stabilize and improve recently,” he added.
Indeed, although Hong Kong sales fell 16% to $889.1 million (HKD 6.94 billion), revenue from the mainland rose 6% to $529.6 million (HKD 4.13 billion).
