Politics have added a dash of caution to dealings for luxury goods company Dickson Concepts (International) during its year to the end of March.

It has listed “potential market volatilities” as the poor political relationship between Mainland China and Taiwan as well as “major uncontrollable factors” such as a trade war between the US and China.

Dickson Concepts owns the luxury Harvey Nichols department store business and operates retail stores under brands including Tommy Hilfiger, JT Dupont, Bertolucci, Roger Vivier and Tod’s. It says the retail climate in Hong Kong, China and Southeast Asia improved in the second half of the financial year.

In Hong Kong, the group benefited from the rise in tourist arrivals, particularly in the beauty and luxury watches categories.

In Taiwan, while the group saw sales turnover grow, the luxury retail market is still weak because of a major drop in Mainland Chinese tourists.

Overall sales for the group for the 12 months grew by 15.6 per cent to HK$3.6 billion (US$458.9 million), while comparable-store sales were up 18.6 per cent.

Taking a cautious approach to expansion, the group opened only seven shops during
the year, taking its network to 107 stores (25 in Hong Kong, 13 in China, 56 in Taiwan, five each in Singapore and Malaysia, and 3 in Macau.

Geographically, Hong Kong contributed 76.1 per cent of sales, Taiwan 17.7 per cent, China
2.8 per cent and other territories 3.4 per cent. In terms of sales mix, fashion and accessories represented 37.3 per cent, watches and jewellery 31.1 per cent, and cosmetics and beauty products 31.4 per cent.