Luk Fook shares slump as profit halves

Shares in Luk Fook Holdings (International) fell to a 30-day low yesterday after the jewellery retailer announced a 54.59 per cent drop in interim profit.

The counter dived 10.34 per cent to as low as $1.30 before ending at $1.34, down 7.58 per cent from Thursday.

The company's profit for the six months to September was $29.44 million, against $64.844 million a year ago. Turnover slipped 6.06 per cent to $816.35 million.

Chief executive Wong Wai-shing said: 'Such a decline is temporary.'

The group blamed the fall in turnover on mainland tourists - who contributed half of total sales - who delayed travel plans for Disneyland's opening in September.

In addition, rents increased 46 per cent during the period.

'This sharp increase in rents has led to a decrease of net profit compared with the same period last year,' Mr Wong said.