Apparel retailer Giordano is reaping the benefits of closing non-performing outlets in its three core markets, with same-store sales up 16.1 per cent during the March quarter to HK$972 million (US$124 million).
The company closed a net 155 stores during the past year, ending the period with 1857 across Greater China, Southeast Asia and Australia, and the Gulf Cooperation Council.
In a quarterly update of unaudited results, the company said all markets returned to normal trading at various times following the Covid-19 pandemic. Groupwide sales rose by 6 per cent, with the GCC up by 14.3 per cent, Southeast Asia and Australia by 13.8 per cent and China – still impacted by social distancing measures in parts of the mainland – down by 1.7 per cent.
Chairman and CEO Peter Lau attributed the Gulf growth to “a succession of well-executed local marketing campaigns and appropriate merchandise assortment”.
Wholesale sales to overseas franchisees fell by 18 per cent, primarily due to large shipments in the later part of 2022 to support the post-pandemic return of normal trading.
The company ended the quarter with $1.087 billion (US$138 million) in cash reserves – an increase of 16.5 per cent year on year. Inventories decreased by 5.6 per cent to $569 million.
