Hong Kong retailer Giordano has posted a first half net profit of HK$174 million (US$22.5 million) – 49 per cent lower than last year’s HK$340 million.

Global sales decreased six per cent to HK$2.7 billion.

The company blamed the fall on weakened consumer spending across all markets, macro-economic challenges and “social disruption” in Southeast Asian countries.

CEO Peter Lau Kwok-kuen said sales of women’s lines under the Giordano brand dropped a lot more than menswear.

“A lot of brands are trying to understand what the new women customers want today and we made the mistake of going after too many options and diluting what we’re strong at: the newly defined basic work wear for women,” he said.

Giordano shut down 112 stores in mainland China, but opened budget brand stores called ‘Beau Monde’ in their place.

It also launched a new store format called ‘Concepts’ in Macau, to be introduced into Hong Kong soon.