Giordano sales decline across China
Giordano sales slid by 8.6 per cent in the three months to September, or by 7.1 per cent if measured by constant exchange rates. Comparable same-store sales fell by 10.3 per cent.
The damage to Giordano sales was largely borne in Hong Kong and Mainland China, where protests have hit inbound mainland tourist numbers since June and Chinese are spending less, spooked by the ongoing Sino-US trade war.
Giordano sales in Hong Kong and Macau fell from $226 million to $169 million and in Mainland China from $251 million to $208 million.
However, the China decline was mitigated in part by a strong performance in Giordano’s relatively new Middle Eastern markets. Sales there rose from HK$134 million to $153 million.
Wholesale sales were constant.
Despite the Hong Kong sales decline, Giordano maintained a network of 75 stores in Hong Kong during the period, the same number it had a year earlier.
Group sales for the quarter totalled $1.075 billion, down from $1.176 billion a year earlier. Year-to-date sales (for nine months) were down from $4.036 billion to $3.617 billion.