I.T, A Leading Fashion Group In Hongkong, Has Issued A Profit Warning.

In August 21st, I.T, a leading fashion group in Hongkong, China, issued a profit warning and announced that it will lose money in the first half of August 31st.

In August 22nd, the closing price of I.T listed in Hongkong fell 5% to HK $2.62 per share compared with the previous trading day, with a current market value of HK $3 billion 133 million.

I.T board said that due to geopolitics, Sino US trade war, sales discount and reduced inventory, some of the market's gross margins and profitability declined. According to the preliminary assessment made by the comprehensive management account and recent performance, there will be a loss in the first half of fiscal year ending August 31, 2019, but the group's financial position is still sound.

Although these factors are partly responsible for the group's performance, I.T's performance has declined in the first quarter of this fiscal year. Group gross profit margin fell 2 percentage points to 63.9% year-on-year.

As of May 31, 2019, the key financial data for the first quarter of the I.T group 2019/2020 financial year are as follows:

Comparable store sales in mainland China increased by 6.2% year-on-year, and gross margin fell 0.6 percentage points to 64%.

Comparable store sales in Hongkong and Macao fell 1.2%, down 5.2 percentage points year-on-year to 59.4%

Sales in Japan and the United States increased by 3.2% compared with the same period last year, and the gross profit margin increased by 0.6 percentage points to 72.3%

In February this year, the I.T group held 30th anniversary ceremonies in Beijing, Shanghai and Hongkong to show the world 30th anniversary of I.T as a node, looking back at the past and looking forward to the future of digital vision. This activity has also been included in the official schedule of Paris fashion. (see the historical report of "gorgeous Chronicles"): Hongkong fashion retail group I.T 30th anniversary flash exhibition is on the official schedule of Paris fashion week, and will be fully digitalized in the future.

Last December, "gorgeous" reported the I.T group and private equity fund IDG capital acquisition of Swedish fashion brand Acne Studios 41% stake in the news. (see historical report: IDG capital is jointly holding Hongkong I.T group to acquire Swedish fashion brand Acne Studios 41% equity).