Giordano: Mainland'S Continuous Closing Stores To Adjust Stock Price Or Downside Risk

< p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201305/15/2013051510472856761.jpg "/" < < > >

< p > > as the main market of < a href= "http://sjfzxm.com/news/index_c.asp" > Giordano < /a >, the mainland of China closed more than 160 stores last year, or affected by this. Mainland sales in the first quarter of this year decreased by 10% compared with the same period last year.

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< p > as the industry gets warmer, many analysts are focusing on Giordano international.

However, according to reporters, as the main market of Giordano, the mainland of China closed more than 160 stores last year, or affected by this. Mainland sales in the first quarter of this year were 10% lower than the same period last year.

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< p > < strong > mainland continuous shop adjustment < /strong > < /p >

< p > according to the quarterly report released by Giordano, the first quarter sales volume was HK $1 billion 514 million, an increase of 6% compared with HK $1 billion 432 million in the first quarter of last year.

Excluding operating income from Middle East acquisitions in the fourth quarter of last year, Giordano's sales decreased by 1% compared with the same period last year.

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Specifically, compared with the same period last year, sales in mainland China decreased by 5% from 500 million Hong Kong dollars in the first quarter of 2012 to HK $473 million.

Market growth in other parts of the Asia Pacific region such as Singapore, Malaysia, Indonesia and Thailand continued to grow, a 12% increase over the same period last year.

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P, the mainland's largest market for Giordano, increased by 4% in the first quarter of this year, but sales fell by 10% over the same period last year.

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< p > sales growth is mainly related to brand sales. In the first quarter of 2013, brand sales decreased by 12%, while store sales decreased by 7%.

The main reason for the decrease in sales of mainland brands was that the mainland closed 163 stores last year, of which 26 were self owned and 137 were franchised.

The main reason for closing the store is that Giordano has repositioned its business substantially to focus on the quality of the first line stores, as well as the profitability, financial capabilities and brand status of the main strategic markets.

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From P to March 31st this year, the group's global sales network was 2624 stores, compared to 2705 stores in the same period last year, a decrease of 81 compared with the same period last year.

In addition, Giordano's operating pressure has eased, the first quarter of this year's inventory cost to the ratio of 63 days, compared to the end of 74 days to reduce 11 days.

Net cash and bank balances increased from HK $130 million to HK $1 billion 303 million.

As more than 90% of the profits turn to free cash flow, the company's cash flow remains strong.

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< p > < strong > > a href= "http://sjfzxm.com/news/index_cj.as" > share price < /a > or downside risk < /strong > /p >

< p > although some analysts emphasize that Giordano's stock price is low, it is suggested that Giordano should be absorbed at a low level. However, during the interview with reporters and other analysts, it is found that the short-term downside risks faced by Giordano can not be ignored.

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< p > Giordano's gross profit in the first quarter was HK $905 million, an increase of 11% over the same period of 8.16 Hong Kong dollars in the same period last year. Giordano believes that the development of new products with fashionable elements and rapid promotion of products has improved Giordano's average selling price and gross profit margin.

However, a Hong Kong stock analyst told reporters that the performance of the newspaper industry in the first quarter could not be ignored if the Middle East purchase matters contributed to the gross profit of HK $88 million of operating income in the current quarter.

"Excluding this operating income, the first quarter performance did not achieve the expected growth."

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< p > in addition, Giordano has pointed out that Giordano has risen 42% since July last year, even though it expected to have a decent income rebound in 2013, the valuation of < http://sjfzxm.com/news/index_s.asp href= > market < /a > has been fully reflected.

Industry adverse factors and increasingly fierce competition will increase the short-term downside risk of stock prices, while the long-term returns of new markets will be low.

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< p > Da Mo also thinks that for Giordano, this year's moderate profit recovery may be the best result.

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