Hong Kong-listed fashion retailer Giordano has reported lower sales for the third quarter, but management said year-to-date performance remains positive.

The company’s revenue for the quarter ended September 30 fell 1.4 per cent to HK$894 million (US$115 million). Sales were down 8.5 per cent in Southeast Asia and Australia and flat in Greater China, but soared 11.6 per cent in the Gulf Cooperation Council.

By channel, e-commerce revenue continued its positive momentum with a 16.5 per cent improvement, while offline sales decreased 4.9 per cent. Same-store sales were down 0.5 per cent.

Management said the group has been pivoting towards high-growth channels and markets as part of its strategic initiatives.

“With a focused approach, we are successfully navigating a period of reset with a view to delivering long-term sustainable growth in line with our strategic vision,” they said.

For the first nine months, revenue remained positive with a modest 0.6 per cent uplift. 

According to the company, its core business maintained stability with 0.4 per cent growth in the quarter and 2.7 per cent growth year-to-date despite challenges, including unprecedented adverse weather in Greater China. 

Giordano ended the quarter with 1627 stores, following a net reduction of 122 locations since the beginning of the year. Inventory was down 2.9 per cent year-to-date as part of inventory optimization plans.