I.T Store Sales In Mainland China Increased 6.8% In The Third Quarter.

I.T (thematic reading) announcements of major business operations for the 3 months ended November 30, 2018 (third quarter).

In the 3 months ended November 30, 2018, the sales of I.T stores in Hongkong, China and Macao in China decreased by 1.8% compared with the same period last year, while that in mainland China increased by 6.8% compared with the same period last year, while Japan and the United States increased by 8.5% over the same period last year.

In the 3 months ended November 30, 2018, the gross profit margin of Hongkong and Macao was 64%, an increase of 1.1 percentage points compared with the same period last year. The gross profit margin of China's mainland was 60.1%, down 4.7 percentage points from the same period last year, and the gross profit margin of Japan and the United States was 68.5%, down 0.4 percentage points from the same period last year.

The gross profit margin of the group was 62.7%, down 2.2 percentage points from the same period last year.

In the 9 months ended November 30, 2018, the gross profit margin of Hongkong and Macao was 63.8%, an increase of 2.9 percentage points compared with that of the previous year, and the gross profit margin of mainland China was 60.6%.

Compared with the previous year, it dropped by 2.2 percentage points, the gross profit margin of Japan and the United States was 71.4%, an increase of 0.6 percentage points over the same period, and the gross profit margin of the group was 63.5%, an increase of 0.1 percentage points over the same period last year.

The announcement indicated that the overall retail market in the third quarter was affected by the complex macroeconomic environment and the performance of the group's operating areas varied during the period.

The same store sales in Hongkong and Macao in China recorded a negative growth in the face of multiple typhoon attacks and weak consumption intentions.

In contrast, the same store sales in mainland China increased positively, while Japan and the United States continued to maintain a good momentum of development.

In addition, the group has been more cautious about the overall business environment in the past few months, as the trade dispute between China and the United States has been upgraded recently, making the uncertainty of future economic prospects increase.

The group continued to take various measures to maintain gross margin, including the suspension of discount promotions.

However, the negative impact of the depreciation of the value of the purchased goods of the company is overshadowed by the increase in gross margin.

Therefore, the gross profit margin declined during the period.