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Hong Kong fashion group I.T stays cool to boost sales

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Hong Kong fashion group I.T reversed its fortunes in the first half of its financial year, buoyed by strong sales in Japan and mainland China.

The apparel retailer recorded a net profit of HK$39.1 million in the six months ended August 31 compared with a net loss of HK$31 million in the same period a year earlier.

Sales rose 7.4 per cent to HK$3.64 billion during the first half period.

The earnings turnaround shrugged off the bleak local retail outlook troubling other players in the city, as the fashion house boosted its appeal among young Chinese consumers increasingly keen on cool and niche brand names.

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Unlike its Hong Kong competitors Esprit, Giordano or Bossini, I.T started as a distributor and retailer of “hard to find labels”, targeting young people as far back as the late 1980s. Its outlets sell dozens of mid-to-high end labels such as French Connection, A Bathing Ape and Kurt Geiger, while it has a team of buyers who determine what new brands and lines the stores will carry.

Plans for Mainland China

Mainland China, where I.T opened 80 stores during its 2015 financial year, delivered year-on-year revenue growth of 14 per cent to HK$1.52 billion in the first half. Its Japanese business was also a star performer, posting HK$326.7 million in sales, a year-on-year rise of 46.9 per cent.

“We expect to extend our footprint to second tier [mainland] cities,” said Kenny Chan, executive director of I.T.

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Rather than chasing big name fashion logos, Chinese millennials are now setting their sights on lesser known but exclusive names, providing a window for top Hong Kong outlets to gain a foothold in the world’s second largest economy.

The company has 395 stores across 22 Chinese cities such as Beijing, Shanghai, Hangzhou and Chengdu.

(Source: SCMP)