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    I.T Group Once Again Issued A Profit Warning Annual Loss Or Increased To HK $700 Million.

    2020/5/27 17:02:00 0

    I.T GroupHongkong IncidentEpidemic SituationLoss Of I.T Group

    Recently, I.T group of Hongkong fashion apparel once again issued a profit warning. It is estimated that net loss will increase to HK $700 million in the fiscal year ending February 29, 2020. Compared with April this year, the group's net annual loss was more than HK $400 million.

    According to public information, I.T group was founded in 1988, is one of the larger fashion brands retail stores in Hongkong. It owns Off-White, Paris and other luxury brands, and is an agent for international brands such as Wakubo Rei and Baby Milo.

    In April 9th, I.T group issued the first earnings warning, saying that the annual net loss is expected to be around HK $300 million. Losses are mainly affected by multiple external macro environments, including the social unrest in Hongkong for several months, which has a negative impact on the business in Hongkong and Macao.

    In January 2020, the outbreak of the new crown disease exacerbated the already difficult business environment. The decrease in the number of inbound tourists and the decrease in consumption of local customers further weakened the weak retail market. In addition to global economic growth and Sino US trade disputes and other environmental factors, sales of the group fell sharply in January 2020 and February.

    The Hongkong incident in June 2019, which lasted for months, not only caused problems to the lives of Hongkong residents, but also caused great losses to Hongkong's retail and tourism industries, and set off a wave of major brands' withdrawal from Hong Kong. And the local brands and enterprises stationed in Hongkong are in the constant turmoil.

    Xie Chiu Yi, chairman of Hongkong Retail Management Association, said that all kinds of retail products were larger than watches, jewellery and other luxury goods. Sales fell by more than 40%, followed by cosmetics and clothing. She said that in June last year, the retail business in Hongkong began to expand, and many companies closed down stores or reduced staff to reduce costs.

    Under the continuous impact of this wave, the Chinese mainland market is constantly expanding new channels of economic growth. The sinking market, the rise of domestic goods, the direct broadcasting of goods and so on are immense. It will occupy a huge share of the mainland's customers in Hongkong's retail industry. Even if Hongkong's retail industry recovers again, I'm afraid it will be difficult.

    The I.T group's I.T and I.T two brands, the former mainly sells luxury brands, light luxury brands and luxury luxury brand products, the latter high-end products, such as high-end brand, tooling and other products, but also suffered many new brands' siege. Such as Edison Chan's CLOT, Shawn Yue's MADNESS and European and American star trend brands.

    At the same time, Lining, Anta, Taiping bird and other mainland brands began to transform to the national tide, attracting the attention of young consumers around the "domestic tide card" pattern marketing, diluted the market that I.T group originally occupied, and brought a double blow.

    At present, with the effective control of the epidemic in mainland China, I.T group has reopened over 9 stores in the mainland market, and sales have resumed. The group's Hongkong and Japanese shops are also fully open, but American stores are still closed. I.T group can turn the tide, the brand children's wear net will continue to pay attention to you.

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