1 Billion Of Giordano'S Cash Reserves Know Where It Is.

Giordano recently released its 2019 performance report. The company achieved sales of HK $4 billion 852 million during the period, a decrease of 11.9% compared with 5 billion 509 million yuan in 2018.

The gross profit margin of the company fell slightly by 0.3 percentage points to 58.7%, and the net profit of shareholders of the company dropped from 480 million yuan in 2018 to 230 million yuan, a drop of 52.1%.

　　 Giordano's cash is nearly 1 billion, but it is still "saving".

By the end of 2019, the company's cash and bank balances were 1 billion 259 million yuan, 994 million yuan after deducting bank loans, compared with 2.3% in 2018.

According to the normal situation, the family surplus grain is not panic, but Giordano holding 1 billion cash is also "heavy heart."

In order to control costs, the recent Giordano blocked, on the one hand, with the owners to negotiate, actively seeking to reduce rent and reduce the market rent of Giordano stores in various markets.

On the other hand, the group also strengthened its cost control measures, such as seeking more favorable conditions for suppliers.

And in the three months since March 1st, Liu Guoquan, chairman and chief executive of Giordano international, has voluntarily cut salary by 50%. Other executive directors and members of each senior management team in Hongkong have also voluntarily reduced their salaries by 30%.

Meanwhile, about 15 other management team members from Hongkong, Macao, the mainland and other less affected areas voluntarily reduced their salaries by 10% and 20% respectively.

All in all, Giordano tried every means to save money.

　　 The channel is stable, but the mainland market has only 1 million 100 thousand stores.

The pressure on the epidemic is greater for any enterprise. After all, the sales of unregistered comparable stores in mainland China, China Hongkong and Macao Special Administrative Region in China during the Chinese New Year are down by about 57% and 61% respectively compared with the same period last year.

But aside from this special period, Giordano is more than just being stressed.

In 2011, Giordano's stores reached a peak of 2671, and sales in 2013 hit a record of HK $5 billion 800 million. By the end of 2016, the number of Giordano stores was 2397, with an average annual closing of more than 50 stores.

By 2019, there were 2375 stores in the world. This figure has not changed much before. Compared with the closing tide of the mainland market in recent years, Giordano's channel management is relatively stable.

In 2019, Giordano had 902 stores in the mainland market, while the mainland market recorded HK $995 million, a year-on-year drop of 23%. Giordano's Greater China market declined most obviously, while the Hong Kong and Macao market recorded 772 million yuan, down 19.5% compared to the same period last year.

You see, in 2013, Giordano's global average single store revenue was around 2 million 200 thousand. In 2019, it included overseas wholesale and other businesses, with an average of about 2 million.

According to the sales in mainland China, the average single store in 2019 is about 1 million 100 thousand. If you think it is more optimistic in a small county town, you can not ignore that as the most important market in mainland China, it has continued to decline to 1 million 100 thousand.

It can only be said that the slide is not terrible. The terrible thing is that we can't see the bottom of the slide.

　　 Profits are sluggish and costs continue to rise.

From the brand side view is not optimistic, one is a cow or a cow, the company's core brand Giordano and Giordano Junior achieved sales of 3 billion 831 million yuan, down 12.2% compared with the same period last year, operating profit from 483 million yuan to 15.73 to 307 million yuan.

The high-end women's clothing brand Giordano Ladies achieved sales of 395 million yuan, a year-on-year decline of 12.6%, operating profit from 72 million yuan to 71.47% to 34 million yuan, operating profit margins were around 8%.

Giordano also mentioned in the announcement that "comparable retail sales and comparable market margins decreased by 10.1% and 11.1% respectively".

In 2019, the total cost of Giordano was about 91.9%, while the total cost to shareholders was 95.3%.

Just now, I talked about the 1 million 100 thousand sale of a single store in the mainland market. If I get less than 60 thousand yuan a year, I believe many people will choose to give up.

Profit is determined by the cost of selling and operating costs. Compared with 58.7% gross margin, the profit is too little.

At first, Giordano's positioning was medium and high end. Now it seems that the card is not high in the middle. Sales decline, cost increases, although holding 1 billion cash, but can not stop the monthly cost of 2 hundred million, but also can not stop the most important market continued weakness. As a fashionable and casual old brand, we have gained many inspirations.