Following two consecutive years of falling revenue, Hong Kong-listed fashion group Portico International saw a swing back with 15.8 per cent growth last year.
Its total revenue for the year was RMB1.846 billion (US$267.9 million), while its revenue of RMB953.5 million in the second half of the year was a 27.7 per cent increase over the second half of 2015. The gross profit margin was 78.4 per cent, down from 80.4 per cent.
Portico says its revival is because it reacted to the shift in market trends and shopping behaviour, mixed economic signals internationally, and “fierce competition” among luxury fashion brands. It brought in stringent cost-control measures, fine-tuned its distribution strategy and streamlined its working structure.
In response to the growing popularity of affordable luxury apparel and quicker changes in fashion trends, the group expanded its product portfolio by introducing Ports Pure (pictured), with the first dedicated store opening in Harbour City Hong Kong in September.
“Furthermore, our business development team has continued to strengthen our wholesale partnership across the globe, particularly in regions such as South Korea and Japan, where the fashion media and peers have shown encouraging response.”
The group’s apparel wholesale business revenue ballooned by 202.5 per cent for the year.
Retail revenue was up 14.7 per cent to RMB1.695 billion. For the second half of the year, retail revenue rose 26.1 per cent to RMB882.1 million.
The contribution from retail segment to total revenue decreased slightly from 92.7 per cent in 2015 to 91.8 per cent last year.
Retail gross profit grew by 12.8 per cent to RMB1.41 billion for the year, with second-half profit up 25 per cent to RMB728.6 million. Retail gross profit margin slightly decreased from 84.6 to to 83.2 per cent.
As at December 31, the group had 343 retail stores in China, Hong Kong, the US and Canada, up from 313 a year earlier.