Fashion retailer I.T Limited says Hong Kong sales have been hit by a “challenging” third quarter, offset by growth in China and Japan.
“The overall economic environment, including our sector, continued to be very challenging in the third quarter,” said chairman Sham Kar Wai in a statement to the stock exchange.
“A strengthened Hong Kong dollar that has the effect of encouraging outbound spending has continued to place downward pressure on our Hong Kong operation. In contrast, our China operation has delivered a positive comparable store sales growth on the back of the outstanding performances of multiple international brands during the period.
“Japan has also continued to yield positive results, irrespective of moderate economic developments in the region,” said Kar Wai.
In the three months to November 30, Hong Kong same-store sales declined by 4.6 per cent, while Mainland China sales rose by 18.5 per cent and Japan sales by 22.4 per cent. For the nine months to November 30, Hong Kong sales were down 2.1 per cent, Mainland China sales up 9.5 per cent and Japan sales by 27.7 per cent.
Kar Wai said a level of enhancement in gross profit margin has been achieved on the group level. “This uplift was primarily as a result of the withdrawal of several price discounting programs, as well as a sales mix focused on higher margin products during the period.”