Luk Fook Warns of Profit Drop

RAPAPORT... Luk Fook has projected a sharp fall in revenue and profit for the first half of the fiscal year amid a resurgence in the coronavirus in the second quarter and its economic impact.Revenue declined 50% year on year during the April-to-September period, while profit decreased 40%, the Hong Kong jeweler said. However, those figures are better than the company had expected given the rise in virus cases in the region in the second quarter. Results for the July-to-September period benefited from the rising price of gold, which buoyed the company's profit margin, as well as an employment subsidy from the Hong Kong government, Luk Fook noted.During the first fiscal quarter from April to June, revenue plunged approximately 60% compared to the same period the year before, while profit plummeted about 80% as the company was forced to shut most of its stores.The company will report its full results for the fiscal first half on November 26.Image: A Luk Fook store in Hong Kong. (Luk Fook)