Giordano's Poor Performance New Brand Beau Monde Opened A Large Number Of Stores This Year.

well-known Casual Wear Brand Giordano recently released its 2014 performance report, similar to that of Lining and Anta, and its performance is not optimistic. The report shows that last year Giordano Sales fell by 5%, net profit decreased by 38%, and the number of stores decreased by 190 compared to 2642 in 2013. Giordano's performance in mainland China has declined significantly, with sales falling by 9%, with only 6% of the electricity supplier's performance improved. The company's brand diversification also slowed down, Giordano Ladies brand, BSX brand Eula brand performance is not satisfactory, new brand Beau Monde dream has opened 13 stores, the brand will open a large number of stores in 2015.

Net profit fell by 38%

The report shows that Giordano realized sales of HK $5 billion 545 million in 2014, down 5% from 5 billion 848 million Hong Kong dollars in 2013, and realized net profit of 408 million yuan, down 38% from 2013's 663 million yuan.

Regionally, in the total performance of 5 billion 545 million, mainland China achieved sales of 1 billion 580 million yuan, Hongkong and Taiwan achieved sales of 1 billion 640 million yuan, sales in other parts of the Asia Pacific region reached 1 billion 362 million yuan, and sales in the Middle East achieved 617 million yuan. In terms of business category, retail and distribution totaled 5 billion 199 million yuan, and wholesale sales to overseas franchisees amounted to $346 million.

The decline in sales led Giordano's gross margin to decrease by 337 million yuan to 3 billion 214 million yuan last year, a decline of 9%, and the average cost of goods increased by 5.3%, resulting in a gross margin of 2.7% to 58% from 60.7% in 2013, resulting in a net profit decrease of 38%.

In addition, the report shows that by the end of 2014, the number of stores in Giordano was 2452, compared with 2642 in 2013, 190.

Giordano's sales performance declined last year, especially in mainland China.

Mainland China's market performance declined by 9%

Giordano's sales performance declined last year, especially in mainland China. Its total sales in 2014 were 1 billion 580 million Hong Kong dollars, down 9% from 1 billion 727 million Hong Kong dollars in 2013, and the total sales volume in 2014 was 1 billion 887 million yuan, down 10% from 2013's 2 billion 96 million yuan.

Giordano said that sales in the first quarter of the company were particularly weak, and brand sales fell by 15%. The company carried out shop renovation throughout the year to enhance the brand and eliminate unprofitable shops. The number of stores in China was reduced by a large number of reorganized stores. By the end of 2014, the total number of stores in mainland China was 961, compared with 200 in 1161 in 2013. Among them, the number of self operated stores has decreased by 60, and the number of franchised stores has decreased by 140. As a result, inventory pressure has been greatly reduced. Compared with the end of 2013, Giordano has lowered the level of HK $14 million held by franchisees, so that the survival of the company in mainland China is at a healthy level.

Compared with offline stores, Giordano's online business performance has improved significantly. The total sales of its own network platform and Taobao, Jingdong and Amazon platforms are HK $183 million, up 6% from 174 million yuan in 2013.

Giordano said that in 2014, the company installed 318 terminals in the store to support online shopping and enhanced marketing in O2O, and the company will further develop new technologies in 2015 to enhance consumer experience.