Hong Kong-listed apparel retailer Giordano says its second-half sales outperformed its first-half by 13.1 per cent.
Sales increased 12.4 per cent to HK$3.8 billion (US$483.95 million) while tax-paid profits attributable to shareholders rose 41.1 per cent to HK$268 million ($34.14 million) during the year.
Due to restrictive economic activity in Mainland China and Hong Kong markets, the group diverted its resources to Southeast Asia and Gulf Cooperation Council segments which helped boost its net profit.
Wholesale sales to overseas franchisees sales increased 54.6 per cent to HK$300 million ($38.21 million) while online sales soared 12.7 per cent.
The company’s gross retail margin increased slightly to 59.5 per cent, and inventories at the end of the year registered HK$612 million ($77.9 million)
“Management will be cautious in expansion through direct-operated stores, especially in markets with high operating costs, such as Hong Kong,” said the company in a statement.
“Alternatively, the group will further build its footprint in developing economies through franchising and licensing.”
The business has also made “encouraging progress” in India, Mauritius, Kenya, Ghana and Egypt with plans to strengthen its proprietary channels and partner with well-established third-party platforms.
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