Luk Fook on Thursday said first-half profit likely fell as much as 40 percent due to declines in both revenue and margins, making it the second Hong Kong jewellery retailer this week to flag a drop in earnings.
Chow Tai Fook Jewellery Group Ltd, China's top jewellery retailer by market value, expects its first-half net profit to drop by up to 50 percent, notably due to subdued spending in Hong Kong and Macau.
Chow Tai Fook, the world's biggest jewellery retailer by market value, posted its smallest quarterly decline in retail sales since January-to-March last year as consumer sentiment showed signs of stabilising.
The French group is still at the top of the Deloitte's ranking of the 100 largest luxury goods companies, followed by Richemont and Estée Lauder like last year. And at their heels is Chinese Chow Tai Fook.
Some of Hong Kong's biggest retailers have closed stores and frozen expansion plans in the past year in response to a drop in the number and spending power of their main customers, mainland Chinese tourists.