Tight time for apparel retailer ITBusiness | Kevin Xu 22 Aug 2019
Apparel retailer IT (0999) has issued a profit warning, saying it may record a net loss for the six months to August 31 after a net profit for the period last year.
The company said it had offered more discounts to increase sales and reduce inventory in view of challenges "such as the Sino-US trade tensions and social instability in Hong Kong." This meant a decline in the gross margin and earnings in regions including Hong Kong and the mainland.
Also looking down is luggage maker and retailer Samsonite International (1910).
Net profit for the first six months was down by 27.5 percent year-on-year to US$49.1 million (HK$381.9 million). Net sales fell 5 percent to US$1.76 billion and the gross profit margin by 0.5 percent to 56 percent due among other things to more US tariffs on products from China.