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    Giordano's Medium-Term Net Profit Decreased By 36.61% To HK $161 Million.

    2019/8/8 17:28:00 21

    Giordano

    Giordano International (00709.HK) announced that sales amounted to HK $2 billion 542 million in the six months ended June 30, 2019, a decrease of 11.1% compared to the same period last year, gross profit of HK $1 billion 508 million, a decrease of 10.98% compared with the same period last year. The profit attributable to shareholders of the company was HK $161 million, a decrease of 36.61% compared with the same period last year.

    According to the announcement, in June 30, 2019, the company provided high-quality, value for money and easy to wear clothing through 2424 network stores, of which 1316 were independent stores. Most stores are located in Greater China, South Korea, Southeast Asia and the Middle East.

    It is reported that sales performance is not ideal, mainly due to the abnormal warm winter. These factors especially affect the Greater China region, whose sales decreased by 17.3%. Group comparable sales and group comparable retail margins decreased by 8.6% and 8.9% respectively. Physical store sales recorded a 8.9% decline. The wholesale sales of franchisees dropped by 20.8%, partly due to the weak market conditions and the tightening of credit policies in the hard times.

    According to the announcement, sales in comparable locations in the Greater China region fell by 12.6%. Increase sales activities to reduce sales and clear sales of inventory, resulting in gross margin down 1.4 percentage points.

    The company will continue to strictly manage the supply chain and remain vigilant in controlling its operating costs. The group has launched a series of marketing programs and smart sales promotion activities to stimulate passenger flow. As far as mainland China is concerned, franchising is still the focus of our development. The franchised store has a net increase of 24 per annualized year.

    Source: lung lung Hui

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