This article comes from the WeChat public account:BoF Fashion Business Review (ID: Business_of_Fashion) , author: Sharon Zhou, head Figure from: BoF fashion Business review
The IT Group has an unknown full name called “Income Team”, which means “profit team”. This outspoken name shows the group’s ambitions, but now it is gradually approaching this goal Far away.
On May 27, the IT Group announced its low-end results for the year ended February 29, 2020, and its performance for the fiscal year 2019 to 2020 was not satisfactory: total turnover decreased by 12.6% year-on-year to 7.771 billion Hong Kong dollars. Several important indicators, including regional segment revenue and brand segment revenue, declined, with a net loss of HK$745.8 million.
Among them, by retail area category, the Hong Kong and Macau markets accounted for 33.9% of the Group’s total turnover. Their turnover decreased by 23.5% year-on-year to HK$2,602,200, and the operating loss was HK$671.7 million. The Mainland China market accounted for 48.6% of the Group’s total turnover, with a year-on-year decrease of 9.0% to HK$3.7514 billion, and total retail revenue decreased by 9.4% to HK$3.7001 billion; operating losses were HK$236.4 million.
Due to the impact of the previous street riots in Hong Kong, since the second half of last year, Hong Kong’s retail industry data has continued to experience double-digit declines. According to data released by the Census and Statistics Department of the Hong Kong Special Administrative Region, Hong Kong’s retail sales in 2019 fell by approximately 11.1% compared with the previous year, the first time in three years that Hong Kong’s annual retail sales have fallen, and the decline is quite different from the 8.7% increase in 2018 Big. After the outbreak in February, the already sluggish Hong Kong tourism industry worsened. The Hong Kong Tourism Board has previously stated that the preliminary statistics of visitors to Hong Kong in April 2020 were about 4,100, down nearly 100% year-on-year. Among them, there were 2945 mainland visitors, a year-on-year decrease of about 99.9%, which again exacerbated the depression of the retail industry in Hong Kong. The negative impact of the epidemic on retail sales also occurred in Macau.