Giordano International warns for a profit decrease
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Giordano International (0709) warned that it expects to record an annual net loss of between HK$110 million and HK$130 million in 2020, as compared with a profit of HK$230 million in 2019.
As stated in the interim results announcement last year, a net loss of HK$175 million was recorded for the six months ended June 30, 2020. However, the group expects to record a net profit of between HK$45 million and HK$65 million in the second half of the year due to the positive trend in retail sales and improvement in consumer sentiment.
The forecast net profit has not taken into account further potential asset impairment charges.
As of end-December, 2020, the group’s merchandise inventory was worth about HK$435 million, below that of 2019 by about HK$113 million.
Questions & Answers
Q.What is Giordano International's expected full-year net loss for 2020?
What is Giordano International's expected full-year net loss for 2020?
The company expects to record an annual net loss of between HK$110 million and HK$130 million for 2020. This compares to a profit of HK$230 million in 2019.
Q.Did the company make a profit in the second half of 2020?
Did the company make a profit in the second half of 2020?
Yes, Giordano International expects to record a net profit of between HK$45 million and HK$65 million in the second half of 2020. This is attributed to positive retail sales and improved consumer sentiment.
Q.What was the value of the company's merchandise inventory at the end of 2020?
What was the value of the company's merchandise inventory at the end of 2020?
As of end-December 2020, the group's merchandise inventory was worth about HK$435 million. This figure is approximately HK$113 million lower than in 2019.
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