Giordano reports decline in profits for second
consecutive quarter owing to US-China trade war
Hong Kong-based international retailer Giordano, has warned
shareholders of decline in profits owing to a likely fall in underlying
sales by about 28 per cent, driving a 38 per cent decrease in profit
attributable to shareholders for the six months ended 30 June.
This will be the second successive quarter where Giordano has suffered
major decline in sales.
Chairman and CEO of the men’s, women’s and children’s apparel and
accessories maker, Peter Lau, believes the decline in sales is confined
to Greater China Region and ‘primarily attributable to the weak retail
environment and poor market sentiment in those regions stemming from the
Sino-US trade war’.
By market, Mainland China sales fell from US $ 378 million to US $ 295
million, in Hong Kong and Macau from US $ 248 million to US $ 225
million and in Taiwan from US $ 201 million to US $ 161 million.
In the rest of Asia-Pacific, they declined from US $ 422 million to US
$ 398 million.
With that being said, Giordano sales in Indonesia, Thailand and Vietnam
remained stable during the first quarter, and in the growing Middle East
market even rose by 10 per cent to HK $ 80 million.
Adoption of new Hong Kong financial-reporting standards applicable to
leases also affected the profit figure.
The company will announce its interim results next month.
In April, Giordano announced that sales in Greater China fell by 17.7
per cent during the first quarter, dragging group-wide sales down by
10.8 per cent, or 8.5 per cent, on a constant-currency basis.