Giordano first-half sales drop 7%
Giordano International said sales for the first half of 2016 fell by 7%, hurt by weakened currencies in Southeast Asia and the closure of non-performing stores.
The Hong Kong-based apparel retailer reported a consolidated group sales of HK$2.532 billion ($326 million) in the six months to June 30, a 7% drop compared to the same period last year.
Sales in China fell by 10%, affected by slower economic growth, and the closure of non-performing stores. E-commerce kept the revenues afloat, outperforming physical stores, making up 16% of total sales.
Under the Giordano brand, menswear contributed to 76% of sales and 24% came from womenswear. In the past 12 months the company has closed 32 stores. Directly operated stores decreased by 75, while franchised stores increased by 43.
“This was in line with an ongoing initiative to exit non-performing high-rent stores,” said the company, in a statement.
Net profit for the six months fell from HK$234 million to 228 million, a decrease of over 2%.
Giordano said that its proactive supply-chain management, heightened marketing efforts and more simple product designs will help improve sales going forward.
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