Hong Kong-listed fashion retailer Giordano reported lower sales and profit in the first half, but an improved margin provided some encouraging signs.
The company’s revenue for the six months ended June 30 decreased 1 per cent to HK$1.9 billion (US$243 million).
Management attributed the decline to a shortfall concentrated in the Gulf Cooperation Council (GCC), with headwinds starting in March due to the crisis in the Middle East region.
Excluding the GCC, underlying revenue increased slightly by 0.4 per cent, reflecting sustained demand across core markets. The e-commerce business remained healthy with sales up 12.5 per cent during the half.
Gross profit margin continued to improve, up 1.6 per cent during the period, driven by a channel mix shift with a smaller wholesale contribution, a more structured pricing framework, and improved product cost savings.
Profit after tax dropped 9 per cent to HK$121 million, mainly due to the underperformance in the GCC markets.
The company said that FY26 is the second year of its “Beyond Boundaries” five-year strategic plan, designed to return the business to growth.
Looking ahead, the retailer’s growth agenda will centre on revitalising core brands, with the relaunch of Giordano under the Giordano 2 program as the next major milestone.
“At the same time, we see significant opportunities to extend our reach into new markets, with a digital-first approach to North America and Europe, alongside the continued development and relaunch of our brands in India,” the company added.
