Giordano issues profit warning to Stakeholders

Giordano International expects profit attributable to shareholders to fall by about 38 percent for the December year, based on a preliminary review of accounts.

The fashion label issued a statement to the Hong Kong Stock Exchange warning shareholders ahead of a formal results announcement scheduled for March.

Chairman and CEO Peter Lau said that while the decline in part followed the adoption of new Hong Kong Financial Reporting Standards 16 regarding leases, which took effect on January 1 last year and the impairment loss on right-of-use assets, it also reflected trading conditions.

“The board is of the view that the decrease is largely confined to Greater China markets, and primarily attributable to, among other matters, the weak retail environment in those regions stemming from the Sino-US trade dispute, an unseasonably warm winter and social issues.”

He said that despite the decrease which may be recorded in unaudited profit, the board considers the group’s overall business in non-Greater China markets remains healthy and the board remains positive on the long-term prospects of the group.