The Only Remaining Brand Of Hongkong Is Giordano'S Medium-Term Profit Margin.

Hongkong brands, once popular in the mainland, are now only Giordano.

The performance of a brand is barely met.

Up to the end of June, Hongkong's casual wear retailer in the first half of fiscal year

International Limited (0709.HK) recorded HK $254 million net profit or earnings per share of 16.1 Hong Kong cents, compared with the 2017 median fiscal year net profit of HK $245 million or HK $2017 per share, while the medium-term net interest rate fell 50 basis points to 8.9%.

However, the mid term earnings report of profit rise did not stimulate Giordano's afternoon stock price after the release of the afternoon market. Instead, the opening of the afternoon market not only lost the increase in the morning market, but fell by 3.35%.

During the reporting period, Giordano's revenue grew by 9.2%, from HK $2 billion 618 million to HK $2 billion 860 million, and the fixed exchange rate increased by 5.5%, of which the average selling price of the same store increased by 5.1%, and the gross profit of the store increased by 3.1%.

The largest single market China

In the first half of the year, HK $680 million, an increase of 12.4% over the same period, while the sales in Hong Kong and Macao increased by 1.1% to HK $478 million, while sales in other markets in the Asia Pacific region increased by 18.9% to HK $838 million.

The company said that despite the fierce competition in the mainland's retail environment, business has steadily moved forward, and the two strategic channels of e-commerce and affiliation have been developing steadily and become the key driving force for the medium term performance.

After the strong lunar calendar, it slowed down in the two quarter, but the same store sales remained positive while benefiting from effective marketing and promotional activities. The Taiwan market began to pick up momentum in the two quarter of 2017, and the same store sales and same store gross margins rose by 11.3% and 13.4% in the first half of the year. The Vietnamese market in other markets in the Asia Pacific region contributed 5.8% of the sales volume, especially in Singapore, Indonesia and Thailand.

The first half of Giordano's electricity supplier revenue recorded an increase of 22.6% to HK $163 million, accounting for 5.7% of the group's total revenue, an annual increase of 60 basis points, of which the mainland China electricity market revenue accounted for 89.6% of the channel, 1-6 sales growth 19.7% in 1-6 months.

The high double-digit growth of the electricity supplier has pushed Giordano's medium-term retail revenue to 9.6% HK $2 billion 471 million, and its medium-term income of joining the business reached HK $389 million, an annual increase of 6.9%.

According to brand, Giordano and Giordano Junior, the median income was HK $2 billion 284 million, an increase of 86.1% over the same period of 2 billion 80 million Hong Kong dollars in the same period in 2017, which accounted for 86.1% of the total sales of women's clothing business, 8.2% of the same store sales growth and 6.9% of the same store gross profit growth, while the children's clothing showed a stronger performance, showing 14.7% and 12.4% sales of the same store and the same store gross profit growth respectively, stimulating the division business profit from 247 million Hong Kong dollars to 266 million Hong Kong dollars, an increase of 7.7%; and Giordano Ladies Ladies business income increased from HK $to HK $, with an increase in sales volume.

In 1-6 months, Giordano recorded HK $1 billion 694 million gross profit, an annual increase of 8.2%, gross profit margin 59.2%, down 60 basis points compared with the same period last year, operating profit 12.2% down 40 basis points compared with the same period last year, EBITDA 15.5% profit margin 15.5% also fell by 40 basis points, EBITDA 442 million HK dollar increased by year.

By the end of June, the group had added 73 stores to 2444 stores, 1293 of which were independent stores.