Jewellery retail chain Luk Fook said group revenues for the year that ended 31st March, 2021, dropped 21.1% to HK$8.86 billion as the pandemic had impacted tourist traffic in Hong Kong and Macau.
Gross profit also decreased by 20.8% to HK$2.63 billion versus a year earlier. But the steadily declining gold price in the second half of FY2021 and the strengthening RMB led to a turnaround gain on gold hedging and net exchange from losses last year.
Together with the government subsidies in response to the pandemic, operating profit increased by 7.6% to HK$1.24 billion, while operating margin increased to 14%.
During the year, Luk Fook operated a total of three brands under the multi-brand strategy and saw a net increase of 246 mainly Lukfook stores. The group added a net total of 222 Lukfook shops worldwide, including 224 shops in Mainland China.
As of 31st March, 2021, the company had a global network of 2,366 shops, spanning across Hong Kong, Macau, Mainland, Singapore, Malaysia, Cambodia, the Philippines, the United States, Canada and Australia.