Fashion retailer I.T Limited said it is likely to continue offering deep discounts to boost sales, after posting a 33 per cent plunge in net profit for last year.
“We don’t see any indication of a recovery in consumer appetite or improvement in the business environment in the near term. So there still is pressure to give discounts in the coming year,” said Benny Fong, head of investor relations and corporate finance at I.T.
I.T, which is listed on the Hong Kong stock exchange, operates 668 stores worldwide with the majority of them in Hong Kong and China. A little more than half of the company’s products are its own in-house brands while the rest are curated, international brands.
Fong said the company had come under pressure especially since major brands all around the world started discount sales earlier compared with previous years, and have also been offering steeper discounts.
The company’s net profits dived 33 per cent to HK$274.8 million in the last financial year ending February, mainly because retail sales in Hong Kong fell while rents continued to rise.