Hongkong Casual Wear Giant Giordano Made Less Than 36.6% To HK $161 Million In The First Half Of The Year.

Giordano International Ltd earned less than 36.6% to HK $161 million in the first half of the year, slightly better than the expected 38% decline in last month's earnings. The shares rose gradually in the afternoon and rose 2.32% to HK $2.65 throughout the day.

During the reporting period, the group's revenue decreased by 11.1% to HK $2 billion 542 million, compared with HK $2 billion 860 million in 2018 and a decrease of 9.1% in fixed exchange rate. The decline in sales was mainly due to a 8.6% decline in store sales and adverse effects on warm winter weather and trade frictions.

The Chinese mainland market still led a decline, with a medium-term income of HK $529 million, down 22.2% from HK $680 million in the same period last year. The Taiwan market fell 15.2%, from HK $355 million to HK $301 million, while Hong Kong and Macao fell by double digits from HK $478 million in 2018 to HK $421 million, or 11.9%. Overall sales in the Greater China market fell by 17.3%.

The income of other Asia Pacific markets dropped slightly from 3.7% to HK $807 million, earning HK $838 million in the first half of 2018. The Middle East market is the only growth market, with an increase of 2.4% to HK $344 million in the period and a HK $336 million in 2018.

According to the channel, the median sales revenue of physical store sales fell by 8.9% to HK $2 billion 102 million, the electricity supplier income fell by 19% to HK $132 million, wholesale business income was HK $308 million, the year-on-year decline was 20.8%, and the HK $389 million in 2018.

According to the brand, the core Giordano and Giordano Junior products accounted for 85.2%, sales fell 12.3% to HK $2 billion 2 million, in the same period of 2 billion 284 million Hong Kong dollars in 2018, the high-end women's clothing brand Giordano Ladies sales fell 2.7% to 217 million Hong Kong dollars, the same period in 2018 223 million Hong Kong dollars. The operating profit of the two brands fell from HK $266 million to HK $195 million and from HK $38 million to HK $27 million respectively.

The gross profit margin in the medium term increased slightly by 10 basis points to 59.3%, and gross profit was HK $1 billion 508 million, down 11% from HK $1 billion 694 million in the same period of 2018, which is 8.9% lower than gross profit margin of stores.

The medium-term operating profit of HK $259 million was 25.6% lower than that of HK $348 million in 2018, which was only 28% lower than that of the profit police. The operating profit rate fell 200 basis points to 10.2%. Under the new accounting standards, EBITDA was HK $618 million, an annual growth of 39.8%. After adjustment, it fell by 22.6%, from HK $442 million to HK $342 million.

According to the Hongkong company, despite the harsh macroeconomic environment and rising labor costs, the company has consistently pursued Cheuk Yue's operation and enhanced its core competitiveness to further reduce product costs and operating expenses. Meanwhile, efforts have been made to develop new markets, strengthen marketing investment and renovate existing stores, so as to enhance brand awareness and provide consumers with more physical examination.

CEO Liu Guoquan reiterated at the press conference that the company would not lay off staff, but recruitment and pay increases would be more prudent, and would not be meaningless promotion, increase costs, but not increase profits. Chen Jiawei, chief operating officer, said that at present, the owners' attitude has softened and is exploring the renewal of rent reduction.

By the end of 6, Giordano's cash and bank balances fell to HK $1 billion 26 million from HK $1 billion 224 million in the same period last year, while 298 million short-term loans.

Earnings decline, the company's medium-term interest rate from 17 cents to 10.2 Hong Kong cents.