Giordano'S Sales Fell 34.6% In The First Quarter Of This Year, And Will Continue To Expand The Market In Developing Countries In The Future

Recently, Giordano released its first quarter financial report as of March 31, 2020. The report shows that during the period, the company's sales reached 849 million Hong Kong dollars, down 34.6%, or 33% if translated at a fixed exchange rate. Among them, the sales of physical stores were 691 million Hong Kong dollars, and the sales of the same store fell by 30.2%.


By region, sales in Giordano's Hong Kong and Macao markets fell 51% to 110 million yuan, sales in mainland China (mainland) fell nearly 49% to 151 million yuan, sales in Taiwan fell 17% to 133 million yuan, and sales in other Asia Pacific regions fell 27% to 291 million yuan. By the end of March, the company had 2263 stores worldwide, a net decrease of 128 stores annually.


For the latest financial report, Giordano said that since the outbreak of the epidemic, public health measures have been implemented in many places, which has led to the suspension of social and commercial activities, seriously affecting consumer sentiment and the customer flow of Giordano stores in many markets.


In the fiscal year 2019, Giordano's sales decreased by 11.9% over the same period, and the net profit attributable to shareholders of the company decreased to 230 million yuan, a decrease of 52.1%. In this regard, some insiders believe that Giordano does not pay enough attention to online business. Online business has great room for development of leisure mass brands represented by Giordano, and product standardization and price popularization are competitive.


Giordano, as an international clothing retailer, owns Giordano, Giordano Junior, Giordano Ladies, BSX and other self owned and authorized brands. Giordano previously said that the company would take a more cautious attitude towards mainland China (mainland) and Hong Kong, China, and actively expand overseas markets, especially for developing countries in the Middle East and Southeast Asia, such as Indonesia and Vietnam. The company has obtained new franchisees in Mauritius, Africa and India.