Hong Kong-listed fashion retailer Giordano has reported flat sales for the first six months, with the decline in Greater China continuing to offset growth in other regions.

The company’s revenue flatlined at a constant exchange rate and decreased 3.4 per cent with currency impact.

Southeast Asia and Australia recorded a 6.7 per cent revenue growth on a constant-dollar basis, while the Gulf Cooperation Council saw a 0.6 per cent uplift. Meanwhile, Greater China sales dropped 5.1 per cent, extending the decline that started in last year’s second half.

The company said it previously focused on profitability through increased prices, cost-cutting measures and lower investment in branding and marketing, which resulted in the decrease in Greater China.

Within the region, Mainland China, Hong Kong and Taiwan reported declines of 9.9 per cent, 6.3 per cent and 8.8 per cent, respectively.

On the bottom line, net profit attributable to the shareholders fell from HK$190 million (US$24.3 million) last year to HK$120 million ($15.4 million). The drop was due to this year’s one-off non-recurring expenses, the reduction in one-off income from the South Korean joint venture, the decline in Greater China, and higher operating expenses.

The company aims to deliver positive growth in the second half of this year and works towards achieving a flat full-year revenue growth.