Hong Kong-listed accessories company Sitoy boosted revenues by 10.6 per cent in the six months to December, but its profit fell by 24 per cent.
The company says it is actively eyeing expansion of its retail presence in Hong Kong and Mainland China.
Sitoy represents Cole Haan, Kenneth Cole, Jockey, A.Testoni and its diffusion brand I29 across Greater China, and has its own multi-brand store network trading under the Tuscan’s and Fashion & Joy banners. Tuscan’s is a brand of high-quality handbags sourced from Italy, while Fashion & Joy is a self-developed brand focusing on stylish travel luggage and business accessories designed and for young trend-setters.
In its results filing, the company said it planned to continue to expand its retail business in the second half of the financial year.
“The group will continue to expand its presence by opening new stores in Hong Kong and mainland China. In addition to adding mono-brand stores, the group will also open multi-brand stores in landmark retail areas to target the younger generation.”
The group is also on the lookout for potential acquisition opportunities.
According to its stock exchange filing, Sitoy achieved revenues of about HK$1.283 billion, a gross profit of $359.4 million (up by 12.2 per cent) and profit of $109 million in its first half. Profit was impacted by legal and professional fees related to the purchase of the A.Testoni brand, the company said.
Revenue from the company’s retail business soared by 46.4 per cent to $224 million, as the company opened seven Fashion & Joy network stores.
Sitoy has been building a portfolio of exclusive rights for distribution and operation of global brands in Mainland China and Hong Kong since 2016.