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    Giordano'S Sales In 2019 Amounted To HK $4 Billion 850 Million, Net Profit Decreased By 39.8%.

    2020/3/11 20:16:00 2

    GiordanoGiordano 2019 PerformanceGiordano Top Salary Cut

    At noon on March 10th, Giordano International Ltd (hereinafter referred to as "Giordano") announced its 2019 results: sales amounted to HK $4 billion 852 million (2018 HK $5 billion 509 million), a decrease of 11.9%; comparable retail sales and comparable market margins decreased by 10.1% and 11.1% respectively; net profit was HK $289 million, down 39.8% over the same period last year.

    The announcement shows that sales of Giordano in Hongkong and Macao (including retail and wholesale sales) amounted to HK $1 billion 24 million (2018: HK $1 billion 286 million); sales in mainland China amounted to HK $995 million (2018: HK $1 billion 293 million); other market sales amounted to HK $2 billion 833 million (2018: HK $2 billion 930 million).

    As an international apparel retailer, Giordano has many brands, including Giordano and Giordano Junior, Giordano Ladies, BSX and other brands owned and authorized.

    As of December 31, 2019, Giordano had 2375 stores, 1274 of which were direct stores, 902 in mainland China, 261 in Direct stores, 73 in Hongkong and Macao, 197 in Taiwan, and 425 in overseas franchisees.

    Sino US trade disputes, regional social events and abnormal warm winter and other macroeconomic factors have affected the retail environment and consumer confidence. These factors have a particularly significant impact on Giordano's sales in mainland China and Hongkong. The revenue generated by Giordano e-commerce is HK $267 million, a decrease of 15%. The main reason is that the performance of e-commerce in mainland China is not satisfactory, and it has been fiercely competitive with the third party platform established in China.

    In response to the adverse effects of the new crown pneumonia epidemic, in March 9th, Giordano announced that Dr. Liu Guoquan, chairman and chief executive officer of the board, voluntarily reduced the salary by 50%. Other executive directors and members of each senior management team in Hongkong also voluntarily reduced their salaries by 30%, about 15 from Hongkong. Other management team members in Macao, mainland China and other less affected areas voluntarily reduced their salaries by 10% and 20% respectively, all for three months, effective from March 1, 2020.

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