Fashion retailer Giordano has warned of a “substantial reduction” in profit for the six months ended June 30.

The company’s board of directors expects profit for the period to be in the range of HK$110-130 million (US$14-16.6 million) after reviewing the unaudited consolidated management accounts and other information.

The retailer believes the decline is due to reduced share of profits from the South Korean joint venture, negative comparable store sales in Mainland China and weaker Hong Kong business.

Giordano said it is implementing certain strategies based on the perceived trends to drive growth in revenue, manage costs and enhance profitability.

The company is still in the process of preparing and finalising the interim results for fiscal half ended June 30, which is expected to be published in August.

The firm also advised its shareholders and potential investors to exercise caution when dealing in their shares in the meantime.