I.T’s profit surged in the first half of the year Plan to expand the radiation range of the e-commerce platform

On October 26th, Hong Kong apparel retail group I.T recently released its interim results report, which earned 87.8% more in the first half of the fiscal year. Some institutions expect the group’s earnings per share from 2018 to 2020 to be higher than market expectations. And the various actions of the group seem to be preparing for this “prophecy.”

Multi-brand fashion apparel retailer IT recently released its first-half financial results report. In the six months ended August 31, 2018, the group’s total turnover reached HK$4,064 million (approximately RMB 3.596 billion). The year-on-year growth was 11.3%; the gross profit margin reached 64.0%, and the gross profit of a total of 2.6 billion Hong Kong dollars (about 2.3 billion yuan), an increase of 13.9%; net profit reached 113 million Hong Kong dollars (about 100 million yuan), It increased by 87.8% year-on-year.

At present, IT’s main source of income is its own brand segment. In the first half of the fiscal year, sales increased by 12.1% year-on-year to HK$2,315 million, accounting for 58.3% of total revenue, while international brand sales increased by 10.2% to 1.626 billion. The Hong Kong dollar accounted for 41.4% of total revenue, while the franchise brand accounted for the smallest share, at 0.6%, but the most significant increase was 53.2% year-on-year to HK$30.8 million.

During the period, the Japanese and US markets continued to record strong performance. IT’s total retail revenue in Japan and the US market was HK$526 million. Meanwhile, the Hong Kong and Macau markets and the mainland market began to reverse, and IT retail sales in Hong Kong and Macau increased year-on-year. From 7.6% to HK$1.56 billion, same store sales growth was 8%, retail sales in Mainland China increased by 12% to HK$1,832 million, and same store sales fell by 2.5%.

China Merchants Securities also pointed out that I.T earnings growth will be driven by strong revenue growth in Mainland China and Japan. In addition, due to better inventory control and lower retail discounts, gross profit margins have improved in all regions, resulting in improved operating margins. The agency expects that the group’s earnings per share from 2018 to 2020 may be higher than market expectations.

It is worth noting that in order to attract the younger generation of consumers, the expansion of the online channel under the main line of I.T is further deepened. It has established multiple platforms in the form of single-brand and multi-brand online stores in Tmall, and has established cooperative relationships with other online wholesalers in the Mainland.

In addition, at the end of September, ITeSHOP Mall Wechat applet will be officially launched, and will sell Alexander McQueen, Comme des Garcons, Off-White, Fred Perry and other brand products.

In the financial report, IT pointed out that its new official E-Commerce platform ITeSHOP, which was re-installed last year, has received positive market response and contributed to the mainland business. To further expand the radiation intensity and scope of the E-Commerce platform, the future IT plan will The platform extends throughout the interior.

In addition to actively expanding the online, I.T also plans to use the “red man effect” to add color to itself. It is understood that in the second half of this year, the fashion brand NAYOUNG Na sample created by Xie Na, the female star with the most Weibo fans, will officially enter I.T. This presence means that the cooperation between the two parties goes further.

As of now, Xie Na Weibo fans have already passed the I.T of the Yipin Na sample card, which is likely to bring a lot of traffic to the latter. And this is not the first time to adopt a star to attract consumers’ attention. In August last year, the group appointed the post-90s star Wu Yifan as its first spokesperson.

Finally, IT revealed in its earnings report that it is preparing for a new product line and special marketing activities, and plans to launch a series of cooperation with other fashion brands in the second half of the fiscal year to maintain its competitiveness in the complex and changing fashion industry, but not Reveal specific cooperation partners.