Portico International revenue up 17 per cent

Half-year revenue shot up 17.9 per cent for fashion group Portico International Holdings, its interim results show.

Its total revenue reached RMB1.05 billion (US$158.4 million), which it attributes to success with its distribution strategy in target markets, together with improved performance across its retail store network.

Revenue for the retail segment revenue grew by 19.5 per cent to RMB971.9 million, thanks to the gradual recovery of the luxury fashion retail environment and increasing recognition of its core label Ports 1961 and the new PortsPure label.

The retail segment’s contribution to total revenue rose from 91.1 per cent for last year’s first half to 92.4 per cent.

Overall gross profit for Portico grew by 19.1 per cent to RMB838.6 million, while gross profit margin increased slightly to 79.7 per cent from 78.9 per cent.

For the retail segment, gross profit was up 19 per cent to RMB812 million, attributed mainly to sales growth.

Retail-segment gross profit margin slightly decreased from 83.9 per cent in last year’s first half to 83.5 per cent.

New markets

“Hard work has paid off with regard to our distribution business in newly established markets,” says Portico. “Our distribution partners in certain target markets, such as Japan and South Korea, have offered us invaluable local knowledge and connection.

“Such cooperation has reduced our business risks by minimising our capital investments and administrative burden in locations relatively new to the group.”

It says it is particularly pleased with its marketing exposure in South Korea where social-media platforms have acted as effective marketing tools for introducing and promoting its labels and collections.

At the same time, there has been growing recognition for its Ports 1961 label in traditionally important fashion markets, with the womenswear collection designed by creative director Natasa Cagalj attracting attention during London Fashion Week.

At the end of June the group had 356 retail stores in Mainland China, Hong Kong, the US and Canada, compared to 343 at the end of last year.

For the second half, the group says it will invest in solidifying Ports 1961 as a global international fashion label while introducing PortsPure to address the growing popularity of the affordable-luxury segment.