Luk Fook Holdings (International) Ltd has announced that the overall profit dipped of 42 per cent during the year ending March 31, 2020.According to the company, revenues during the year fell 29.2 per cent due to difficulties arising from the continuing impact of the US-China trade war, social incidents in Hong Kong and the Covid-19 pandemic, with Hong Kong and Macau suffering from a decline in tourist arrivals as well as dwindling consumer sentiment.
Luk Fook’s revenues from Hong Kong, Macau and overseas markets decreased by 36.4 per cent while those in China sank 17.4 per cent. Same-store sales in Hong Kong and Macau recorded an 80 per cent drop from April to May 2020, while same-store sales in China registered a narrower decline as shops resumed businesses.
However, from beginning of June retail sentiment in Hong Kong and Macau has gradually recovered. The decline in same-store sales in the first three weeks of June narrowed to around 60 per cent, while overall shops in China continued to show improvements. The group revealed it will close five stores in Hong Kong in the coming year as it plans to open two new shops in Macau.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
