Hong Kong-listed fashion retailer Giordano has reported higher sales for fiscal first half, which was mainly driven by a double-digit boost at its e-commerce business.
The group’s revenue for the six months ended June 30 was up 1.6 per cent to HK$1.934 billion (US$248 million), which management described as a “notable increase” in a “volatile political and economic climate”.
Most of the growth was driven by the online business, which recorded a 26.1 per cent uplift, attributed to ongoing digital transformation and customer-focused initiatives.
By geography, Mainland China revenue rose 13 per cent, including a nearly 18 per cent growth in the second quarter and 8 per cent improvement in the first quarter. Same-store sales were flat in Q2, an improvement from the 3.6 per cent decline in Q1.
Revenue in Hong Kong and Macau swung from a decline of 6.5 per cent in Q1 to a 2.2 per cent growth in Q2, outperforming the negative overall retail sales in Hong Kong’s wearing apparel sector.
Sales in the Gulf Cooperation Council expanded 1.9 per cent during the half. Southeast Asia and Australia slid 8 per cent, largely attributable to the weak performance of the Indonesian market.
The group’s gross margin declined by 3.3 percentage points to 55.6 per cent, primarily due to a higher proportion of online sales and wholesale, inventory clearance efforts, and increased merchandise costs. Attributable net profit was largely flat, up by only 0.8 per cent to HK$121 million.
“It has been a year since we announced our ‘Beyond Boundaries’ five-year strategy,” said CEO Colin Currie.
“Since then, we have successfully executed a series of ‘Quick Win’ initiatives to lay a strong foundation for 2025 and beyond. In ‘Beyond Boundaries’, 2025 is slated for a year of reset: A year focused on strengthening our ‘Digital-First’ strategy, simplifying our brand portfolio, and ‘Winning in Greater China’,” Currie continued.
“While we are encouraged by these results, we continue to reflect and recalibrate areas that need to be improved, particularly in protecting our gross margin. We are actively reviewing our processes and enhancing sourcing efficiency to support better performance,” he added.
Giordano reported a 1.2 per cent increase in revenue in the last fiscal year.
