International Housewares Retail Company (1373) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 31 October 2025 was HK$1,196.9 million, down 5.8% year-over-year, reflecting challenging retail conditions in Hong Kong and increased competition from e-commerce and aggressive promotions by offline competitors.

• Profit attributable to owners was HK$27.5 million, a 16.6% decrease compared to the same period last year, but the group maintained operational stability and profitability.

• Cash and cash equivalents increased to HK$324.4 million from HK$284.6 million as at 30 April 2025, indicating strong liquidity.

• Interim dividend of HK3.0 cents per share declared, totaling HK$21.4 million.

Financial highlights

• Gross profit margin was 45.6%, slightly down from 47.0% in the prior year.

• Operating profit was HK$40.0 million, down from HK$46.9 million year-over-year.

• Basic earnings per share were HK3.84 cents, compared to HK4.58 cents last year.

• Total staff costs reduced by 9.3% to HK$180.9 million.

Outlook and guidance

• The group maintains a cautiously optimistic medium- to long-term outlook, focusing on Hong Kong, Singapore, and Macau.

• Strategic reforms will continue, emphasizing service marketing, brand elevation, and omnichannel integration.

• Ongoing cost control, automation, and data-driven efficiency initiatives are expected to support profitability.

• Brand elevation and service-led consumption platform initiatives are set for 2026 to deepen customer engagement.