"Next year will mark the 20th anniversary of our company and we will definitely have something to do," said vice chairman Lo Wing-yan.
Founded in 1988 by brothers Sham Kar-wai and Sham Kin-wai, I.T was formerly known as GREENPEACE, and was just a 200-square-foot shop selling Dr Martens shoes.
The Shams launched a new retail store called green peace in 1996, which targeted a younger market and offered apparel priced lower than that sold at GREENPEACE. But the non-profit environmental protection organization called Greenpeace filed a lawsuit against the company forcing it to change the name, and it became I.T.
"There is no apparent meaning [for the name I.T]," Lo explained, though the name reportedly means Income team.
"Most of our brands were designed by our creative director, who emphasizes graphics and balance."
The retail giant first started with I.T and i.t - which sells apparel from well established international brands such as Balenciaga, Miu Miu and Dior Homme - and launched its own brand b+ab in 1997, targeting ladies wear and accessories.
Business has boomed since then. The company launched 5cm in 1998 and www.izzue.com in 2000. It also cooperated over outlets with French Connection in 2003 and last year launched two more brands, Chocoolate and Vanilla Suite.
"We want to expand gradually. If we expand too fast and don't get the job done well, our initial efforts will have been wasted," Lo said.Chocoolate sells everyday wear for men while Vanilla Suite sells ladies footwear.
Lo said it usually takes one year for each in-house brand to break even.
"Just take Chocoolate and Vanilla Suite as examples. We expect the two brands will start contributing profit this year," Lo said.
In the first year of operation with seven outlets opened for each brand, Lo said sales of each brand already exceeded those of the well established brand 5cm.
"We want to create something like affordable luxury, that is, popular commodities."
Retail sales of international product brands - which were sold in I.T and i.t - increased 24.2 percent, accounting for 47 percent of total revenue for the year ending February 31.
Yet the rapid growth of international product brand sales dragged down the gross profit margin of the whole company to 60.8 percent from 61.1 percent year on year, as in-house and licensed product brands comparatively earned a higher margin.
"International big brands are essential to our business which can consolidate our position as a trendsetter," Lo said.
The expansion pace of I.T, i.t and izzues had tapered off lately, and the company would put more resources into its own brands.
"Six I.T [outlets] in Hong Kong is enough," Lo said. "The number of i.t and izzue is also enough for the Hong Kong market."
The company will hire fashionista Michele Monique Reis as the spokeswoman for Vanilla Suite in September.
"That will be like a crossover, as we produce what Michele designs," Lo said.
I.T began forays in the mainland market three years ago by forging a 50/50 joint venture named G.S-i.t with Glorious Sun Enterprises. The number of stores had increased to 169 as of the end of May.
"Our partner has experience [in operating retail outlets in the mainland] and has already established a good relationship with mainland officials," said Lo explaining why I.T entered the mainland market by forming a joint venture.
"It's hard to obtain licenses in the mainland and pass through the regulatory approval [if I.T expands its business alone]."
Despite soaring revenues, G.S-i.t is still in the red.
"Tapping into the mainland market was a right move, but we never expected to break-even in only a few years," Lo said.
G.S-i.t reported a net loss of HK$17 million in the first half of last financial year while the second half posted a net gain of HK$5 million.
"We are confident the business can swing into the black this year," Lo said.
I.T is planning to acquire the other 50 percent stake in G.S-i.t.
Lo said he is positive that the buyout will be completed by the year end.
"Revenue in Hong Kong amounted to HK$1.5 billion last year and that in the mainland was about HK$300 million. I think in six to seven years' time, revenue in the mainland will outstrip that in Hong Kong."
The company previously said it aimed to triple its market capitalization to HK$4 billion in five years.
Market capitalization of the company was HK$1.94 billion as of Friday.
