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

Recently, Giordano released the first quarter earnings as of March 31, 2020. The report shows that during the period, the sales volume of the company decreased by 34.6% from HK $849 million to HK $33%, but by a fixed exchange rate, it fell by 33%. Among them, sales of solid stores amounted to HK $691 million, while same store sales fell by 30.2%.


By region, sales in Giordano, China, Hong Kong and Macau fell by 51% to 110 million yuan, while sales in mainland China (mainland) fell by nearly 49% to 151 million yuan. Sales in Taiwan, China, fell 17% to 133 million yuan, while sales in other parts of the Asia Pacific region decreased by 27% to 291 million yuan. By the end of March, the total number of global stores in the company was 2263, with a net decrease of 128 per annualized year.


On the latest financial results, Giordano said that since the outbreak of the epidemic, many public health measures have been implemented, resulting in social business pause, which has seriously affected consumer sentiment and the flow of Giordano shops in many markets.


In the fiscal year of 2019, Giordano achieved a 11.9% reduction in sales in the same period, and the net profit of shareholders of the company dropped to 230 million yuan, a drop of 52.1%. In this regard, there are people in the industry that Giordano does not attach enough importance to online business. Online business has great room for development of Giordano's leisure brand, and product standardization and price popularization are competitive.


As an international apparel retailer, Giordano has Giordano and Giordano Junior, Giordano Ladies, BSX and other brands owned and authorized. Giordano said earlier that the company would take a more cautious attitude towards Mainland China (mainland) and Hongkong, China, and actively expand its overseas markets, especially in developing countries in the Middle East and Southeast Asia, such as Indonesia and Vietnam. The company has acquired new franchisees in Mauritius, Africa and India.