I.T Group To Reduce Weight And Improve Efficiency In The Mainland

Today, I.T group has released the mid term financial report again this year. According to the content, the number of direct outlets in Hongkong has been reduced from 275 in February to 261 at the end of August, and the number of direct outlets in the mainland has decreased from 253 to 246, plus the overseas markets such as Taiwan, Macao and Japan, and I.T group has closed 26 stores in half a year.

However, the overall performance is red.

The total business volume of I.T headquarters in Hongkong from August 31st to HK $1 billion 656 million, an increase of 3.9% over last year, accounting for 51.3% of the group's total turnover, and the total turnover of mainland China's business increased by 19.7% to HK $1 billion 220 million compared with last year, accounting for 37.8% of the total turnover of the group, and its second largest source of revenue.

It is worth mentioning that the I.T group's strategy is driven by a series of latest international well-known brands and a number of highly original self created and licensed brands. During the review period, the group's own brands continued to be the largest source of revenue, accounting for 56.1%.

Driven by a 9.8% increase in turnover, the gross profit margin of I.T group increased by 14.9% compared with the same period last year, and the gross profit margin rose by 2.7% to 61.9%.

And the development of I.T group in the mainland.

Total revenue reached HK $1 billion 122 million, an increase of 20.2%.

Comparable store sales increased by 4.3%.

I.T said, "the Group believes that the accelerating pace of industrialization and urbanization in mainland China, the rapid growth of lower level cities, and the trend of increasing the taste of life by the middle income class in particular, will provide a favorable business environment for the unique quality brands in the long run."

Facing the above market conditions,

The retail network expanded by 1.7% to 886344 square feet in August 31, 2014 and 871518 square feet in February 28, 2014. The retail network is expected to expand further in the current year.

It is reported that

The operating profit amounted to HK $30 million, compared with a HK $14 million operating loss in the same period last year.

It is reported that the main reason for the loss of profits is that the positive discount activities have been reduced during the period, leading to a gross profit margin rising to 60.4%, and the operating cost being equal to the sales volume, which is 57.9%.

For future development, I.T said that it is also prudent to embrace new ideas and seize new opportunities. It will continue to focus on various products, store design, customer service, discount strategies and other aspects to enhance individual store performance.

"On the mainland of China, we like to see further expansion of the retail sector in the first and second tier cities.

We will continue to study opportunities to further promote business growth in the region and strive to expand the market and enhance brand awareness. "