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I.T Group quarterly sales slump as restrictions bite

Hong Kong fashion group I.T saw same-store sales largely plummet during the three months to 30 November 2020, with sales in Hong Kong, Macau, Japan and the USA being impacted by pandemic trading restrictions.

Same-store sales in Mainland China were up 5.1 per cent during the period, while Hong Kong and Macau sales fell 23.5 per cent and Japan and the USA fell 36.8 per cent.

The group operates Chocolate, 5cm, Izzue, Double Park, Kurt Geiger, Camper, and A Bathing Ape.

“Our sales performance was severely affected by the Covid-19 situation over the period,” I.T founder and chairman Sam Kar Wai wrote in a release.

“The decline in same-store sales growth in most markets was primarily a result of Covid-19 related restrictions and decline in inbound tourism [and] as a result of the overall market conditions… the group recognised non-cash impairments of non-financial assets of HK$119.8 million for the Hong Kong and Macau segment.”

The results come just months after I.T Group said it is courting a plan to delist from the Hong Kong Securities Exchange, following a tempting buy-out offer from founder and chairman Sham Kar Wai and private-equity investor CVC.

Under the proposal the bidders would offer shareholders HKD3 (US 39 cents) a share, representing a 54.6-per-cent premium on the trading price on November 30 when trading was suspended pending an announcement, valuing the business at $168.37 million.

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