Dickson Concepts (0113) said its net profit rose 38.8 percent to HK$350.8 million in the year ended March, thanks to higher sales and profits from its investment portfolio.

It declared a final dividend of 35 HK cents per share, 29.6 percent higher than a year earlier.

The total payout stood at 45 HK cents, an increase of 28.6 percent.

The Hong Kong-based luxury goods retailer saw its revenue rise 12.6 percent to HK$2.4 billion amid higher sales of cosmetics and beauty products and rising interest income from debt securities and deposits.

The revenue from watches and jewelry accounted for 39.8 percent of the total, followed by cosmetics and beauty products, fashion and accessories. Securities trading contributed to 4.8 percent of total revenue.

Other incomes swung to profit as equity investments recovered and interest income continued rising.

Strict control of costs also contributed to its profit increase.

The group closed its Harvey Nichols store at the Landmark in Central and its Beauty Bazaar store at The One, citing that consumer sentiment in Hong Kong was weak as a result of poor market conditions and high interest rates.

With "the most conservative approach in managing its retail network," its retail network totaled 61 stores, comprising five in Hong Kong, 28 in China, and 28 in Taiwan.

The group expects the retail market in Hong Kong to be "extremely difficult" in the current financial year as local consumers travel and spend money abroad.

With net cash of HK$2.7 billion, it declared confidence to cope with the difficult retail climate and potential economic downturn.

Its shares rose 1 percent to HK$5.19 yesterday.

The Harvey Nichols store in Pacific Place. Sing Tao

Dickson Concepts' net jumps 39pc to $350m