Strategy Is Right, Profit Grows Steadily, Giordano 2017 Goes Against The Trend To Rise Sharply.

In the recent 2017 financial year annual report, Giordano international sales increased by 5.2% to HK $5 billion 412 million, about 4 billion 380 million yuan, and net profit rose 15.2% to HK $500 million, about 404 million yuan, with a gross profit margin of 59.5%.

The increase in profits has benefited from the strong sales growth in our inland areas. In January and February this year, group sales increased by 16.4% over the same period last year. The gross profit margin of self operated stores is expected to resume and improve this year.

From the point of view of sales channels, entities are still the main business of Giordano.

Entities contributed 80.7% of sales, a total of HK $4 billion 366 million, an increase of 4.1% over the same period last year.

Strong growth in women's wear and children's wear

The core Giordano brand accounts for 88.1% of the total brand sales.

High end of the year

The brand Giordano Ladies stores reached 79 stores, with a total sales volume of HK $423 million, an increase of 5.5% over 2016.

Comparable store sales and gross margins increased by 5.8% and 5.4% respectively.

Business growth was the most robust, which increased by 16.1% and 19.3% respectively over store sales and gross margins.

According to the winning network, Giordano international has many brands including Giordano and Giordano Junior, GiordanoLadies, BSX, and other owned and licensed brands.

The store network has reached 2414, of which 1268 are independent stores.

Most stores are located in Greater China, South Korea, Southeast Asia and the Middle East.

In 2017, the net number of stores increased by 17.

In 2017, Giordano's business in mainland China was still competitive, and e-commerce and franchising strategy was a milestone success, and also a key driver of performance growth.

For the future, Giordano said that the outlook for the mainland of China remained optimistic in 2018. The main focus of Future Ltd is China's two pronged expansion plan, namely e-commerce and franchising.

In terms of channels, in addition to continuing to upgrade the group's Direct stores, management is also committed to using the proven mode in mainland China to rapidly develop e-commerce in all markets.