With a weakened market in China, clothing retailer Giordano International’s consolidated sales last year fell by 4 per cent to HK$5.145 billion (US$662.5 million).
Non-performing stores in China were closed, and a weakened renminbi eroded the translated sales from the mainland.
Consolidated gross profit eased by 1 per cent, supported by an improved gross margin of 1.8 points to 59.4 per cent. This was a result of pricing discipline and increased sales contribution from regions with higher margin.
Comparable store gross profit was up by 2 per cent despite flat sales.
Profit attributable to shareholders of the company increased by 2 per cent year-on-year to
HK$434 million, while net profit margin rose to 8.4 per cent from 7.9 per cent in 2015.
The international apparel retailer has a portfolio of brands, including Giordano and Giordano Junior, Giordano Ladies and BSX, plus third-party brands under licence. As at December 31 the group had 2397 stores in more than 30 countries, of which 1254 were standalone stores. Most of the stores were in China, South Korea, Southeast Asia and the Middle East.
Giordano says it plans to expand its footprint in Southeast Asia as well as its franchise network in China.