Giordano’s sales were down five per cent to HK$1.27 billion (US$163.8 million) in the quarter to September 30.

The company blamed the decline on several factors. In Taiwan, a combination of poor weather and weakening consumer demand impacted on sales.

Hong Kong sales were down five per cent compared to the same period last year, largely as a result of a significant ‘closing down sale’ from the closure of a major store last year. The reduction in mainland visitors to Hong Kong also had some impact.

Sales in Mainland China decreased by seven per cent due to a weakening of the economy which led to an excess of inventory resulting in heavy discounting.

Singapore experienced a downturn in the first half of the year, with sales down six per cent. Fresh merchandise together with some store upgrades have contributed to a recovery, with sales now down three per cent compared to the same period last year.

Sales in other Asia Pacific markets, mainly Malaysia, Indonesia, Thailand and Australia, grew by 15 per cent. Indonesia and Thailand posted double digit growth compared to the same period last year.

“With market demand highly volatile and uncertain, the group will respond flexibly to continue to minimise excess inventory, implement appropriate price promotion and reduce operating costs,” said Giordano chairman and CEO Lau Kwok Kuen.

The brand says China will remain its key market for growth strategy. It says it will boost the franchise program and implement fast marketing in the market.

Giordano expects to complete the acquisition of its Saudi Arabian and Emirate associate businesses and fully integrate their operations into the group in November.

“We are confident of completing this year’s business with a strong finish, with sales growth underpinned by strong margin and inventory controls,” said Kwok Kuen.

Giordano operates more than 2700 stores and counters in Greater China, South Korea, Southeast Asia, Australia, India and the Middle East.

GB