I.T Turn Over Salted Fish In Mainland China Market

Hongkong trend

Retail group

It will rely more and more on the mainland market and reverse the decline in profits for many years.

I.T (00999.HK) announced its year-round results as at the end of February. The turnover for the first time exceeded 8 billion, an increase of 6.1% to 8 billion 1 million yuan compared with the same period last year. Gross profit was 4 billion 928 million yuan, an increase of 7.92% over the same period last year, and the gross profit margin was 61.6%, up 1 percentage points.

The profit rose by 50.25% to 314 million yuan, but the profit of the group increased by 14.6% to 315 million yuan if the special non recurrent foreign exchange loss was 65 million 100 thousand yuan due to the withdrawal of group 1 billion 187 million RMB deposit in the 2015 to 2016 fiscal year.

It is noteworthy that I.T's income in mainland China has surpassed Hongkong, and its performance is also polarized, in Hongkong.

The same store recorded a 4.2% decline while the mainland market recorded an increase of 7.1%.

Hongkong's total retail sales fell by 6.3% to HK $3 billion 242 million 900 thousand, and the sales area also decreased by 7.7%, which could reduce the sales of comparable stores by 4.2%, while the previous year saw a decline of 2%, with an expanding trend of decline.

Macao's total retail sales fell by 2.5% to HK $216 million 500 thousand.

The group pointed out that the local consumer market in Hongkong has been sluggish. Its winter is warmer and warmer than usual, and the number of visitors to Hong Kong has fallen. This makes the business environment more challenging.

In addition, the cost of operating retail channels such as rental and staff costs continues to rise in other joint market factors, which continue to adversely affect.

I.T emphasizes that the store integration plan in Hongkong will have to continue to strive to control costs and improve overall store efficiency.

Retail sales in mainland China rose 16% to HK $3 billion 461 million 300 thousand and sales area increased by 18.2%.

The sales of comparable stores increased by 7.1%, compared with an increase of 3.9% in the previous year.

I.T said that compared with the mainland market, the mainland business will continue to expand.

The growth of the mainland, including the middle and high class, is still strong, and the demand for high-quality fashion products is growing.

The total sales area of I.T in China increased by 18.2% over the past year. The new cities, including Nanning, Changchun and Kunming, are optimistic about the future growth potential of the Chinese market.

Up to now, the group's self managed shops in China have covered 28 cities.

The most robust retail sales in the Japanese market were HK $731 million 400 thousand, up by HK $41.4% in the previous fiscal year, and 27.2% in its base currency.

The group pointed out that Japan is a gathering place for trend makers, and the local fashion industry is fiercely competitive, and the Group continues to perform well in Japan.

We will continue to enhance store design including physical stores and online stores to enhance brand awareness, and further enhance the brand loyalty of A Bathing Ape group.

The company has said that the number of visitors to Japan continued to rise due to the continued hot sale of the A Bathing Ape brand acquired a few years ago, which means that visitors to Japan to buy A Bathing Ape products in Japan are one of the main driving forces of I.T business increment.

Earlier, I.T continued to introduce global trend brands to expand the Chinese market.

Off-White recently opened two stores in Hongkong and Shanghai. At present, only 2 of the 10 brands in the world are located outside Asia, while Off-White's Chinese regional partner is I.T.

Despite the excellent performance of the mainland and Japan, the group said that the financial year was not a good year for the fashion retail environment of many of the group's operating areas.

In fact, during the year, a number of important events, including the political instability in the developed economies, the economic adjustment in the mainland and the pressure generated by the rising exchange rate of the Hong Kong dollar, will further depress the development of retail trade in various regions.

As of press release, I.T (00999.HK) shares rose more than 2% to HK $3.28 per share, and the stock price rose more than 80% in the past 12 months, with a market value of HK $3 billion 900 million.

More interesting reports, please pay attention to the world clothing shoes and hats net.