Giordano'S Poor Performance In The First Half And Double Drop In Revenue And Net Profit

The international half day report was released in mid afternoon on August 11th. Data showed that Giordano international achieved HK $2 billion 532 million in the first half of the year, a decrease of 7% compared with the same period last year, and net profit of HK $204 million, a decrease of 2% compared with the same period last year.

Reporters noted that, as for the reasons for the decline in performance, Giordano International said it was mainly due to the closure of poor performance and relatively high rent stores in 2015, and the slowdown in the Southeast Asian market which caused the local sales growth to slow down.

In addition, Giordano international also said that the economic growth slowed down, the spring weather was extremely cool, and the closing of poor performance stores led to a 10% decrease in sales in the Greater China region.

Reporters here also learned that in the interview, for the second half of the development, Giordano plans to increase marketing efforts and more concise product design to enhance business revenue.

Yuan Fu securities analyst also said that although the retail industry in Hongkong did not get out of the cold winter, the number of visitors to Hong Kong has not stopped. However, with the fall in rental costs and the slowdown in turnover, it is believed that for Giordano, which sells mid end products, the pace of recovery will be quicker and the performance will have the opportunity to bottom out in the second half.

Yuan Fu Securities believes that, due to the high rent in the first tier cities in mainland China and the fact that the brand competition is too large, Giordano will continue to shut down stores that are not performing well, while the three or four tier cities are less competitive and still have room for development. Therefore, Giordano will still have the opportunity to expand local businesses in these cities.