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Hong Kong leads ‘drastic’ drop in sales for Giordano

A “drastic” drop in sales has led apparel retailer Giordano International to record a US$22.6 million loss in the six months to June, of which $13.2 million alone was attributable to its Hong Kong operations.

The company said in a stock-exchange filing that post June 30, sales have begun to recover, but while it continues to assess the impact of the Covid-19 crisis on its operations it is too soon to project its full-year performance. 

Last year’s first half saw the company report a net profit of $20.8 million.

Group-wide sales fell by 44.4 per cent for the half year to $182 million, with the impact of Covid-19 beginning in January in Mainland China, leading to a ban on cross-border travel from Mainland China into Hong Kong and Macau.

Non-cash provisions relating to Hong Kong accounting laws also contributed to the loss.

Online sales surged 93.8 per cent during the six months to $17.9 million, accounting for 9.8 per cent of total group turnover, nearly double the share of the same period last year.

Giordano’s chairman and CEO Peter Lau said the group will continue to focus on third-party online platforms for future growth.

Giordano operated 2187 stores at the end of June.

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