Giordano'S Pformation Has Achieved Initial Success And Its Performance Has Been Growing.

Despite a smaller share of earnings growth, investors said they saw the effect of a company pformation.

You know, in 2014, Giordano's sales fell 5.18%, net profit fell 38%, and from 2013 to the fourth quarter of last year, it has at least 7 consecutive quarters of same store sales decline.

"This reflects the group's strengthening of commodity mix and the provision of a more closely related product line.

Our purchasing team is now strictly committed to stock discipline and constantly improving the selection of commodity procedures and distributing products to different outlets. "

As for the growth of merchandise sales, Giordano said so.

However, Giordano's gross profit margin dropped by 1.7 percentage points to 55.2% in the first quarter of last year from 56.9% in the same period last year.

Challenges: lack of confidence in opening new stores in mainland China, slow progress in new brand Beau Monde stores, weak demand in Hong Kong and Taiwan, high rent in prime locations...

The company pointed out that, based on the first quarter's performance, the two quarter will continue to grow moderately.

The company said it was partly due to the increase in the cost of products due to the devaluation of the Southeast Asian currency. In addition, the gross margin was reduced in order to clean up the excess inventory of electronic channels in mainland China and increase the price reduction.

China has always been the main position of Giordano, especially the mainland market.

In the first quarter, its

Sales in the mainland market increased by 2% (in local currency, the same below).

The company said

The growth is mainly in two aspects.

First of all, it has substantially reshaped the store portfolio in China, closed down the loss shops and eliminated the loss franchise.

In addition, the same store sales in the mainland market are strong, partly due to low base numbers, but also in re centralization of resources to develop business in mainland China.

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Compared with the mainland market, sales growth in Hongkong and Taiwan is stronger.

Among them, sales in Hongkong increased by 6% compared with the same period last year, while same store sales increased by 12% over the same period, while sales in Taiwan increased by 16%, while same store sales increased 18% over the same period last year.

As of May 12th, Giordano shares rose 0.54% to HK $3.73.

As a matter of fact, Giordano has been reversing the trend of business after many years of continuous decline in its performance.

Announcements showed that in the first quarter, Giordano reduced 40 stores again, 16 of which are located in mainland China.

Liu Guoquan, executive director of Giordano, points out that it will continue to shut down unprofitable stores and ensure that new stores can provide customers with quality products, convenient locations and good brand image.

Inventory is also what Giordano has been doing.

Data showed that by the end of 3, its inventory had decreased from HK $514 million at the end of 2014 to HK $452 million.

Total inventories decreased by 16% compared with December 31, 2014, and 2% as compared with the same period last year.

Liu Guoquan pointed out in the announcement that in 2015, it will continue to promote the strategy of stock elimination.