Giordano sales down in China
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Giordano sales in Greater China plunged by 17.7 per cent during the first quarter, dragging group-wide sales down by 10.8 per cent, or 8.5 per cent on a constant currency basis.
In a stock exchange filing on the eve of the holiday weekend the casual apparel retailer blamed the downturn on “uncertainty stemming from the Sino-US trade dispute and abnormally warm weather”.
Giordano sales in Indonesia, Thailand and Vietnam remained stable during the quarter, and in the fledgling Middle East market rose by 10 per cent to HK$80 million, slightly compensating for the heavy impact of China.
By market, Mainland China sales fell from $378 million to $295 million, in Hong Kong and Macau from $248 million to $225 million and in Taiwan from $201 million to $161 million. In the rest of Asia-Pacific, they declined from $422 million to $398 million.
In the three months to March 31, inventories rose from HK$507 million to $512 million.
During the quarter, Giordano closed two stores in Hong Kong and Macau and reduced directly operated stores on the mainland by 31, but opened 19 franchised outlets.
Questions & Answers
Q.What specifically caused the large decline in Giordano's Greater China sales during the first quarter?
What specifically caused the large decline in Giordano's Greater China sales during the first quarter?
The casual apparel retailer attributed the significant sales downturn in Greater China to two main factors: ongoing uncertainty arising from the Sino-US trade dispute and abnormally warm weather conditions experienced during the period.
Q.Did Giordano's performance in other regions also suffer during the first quarter?
Did Giordano's performance in other regions also suffer during the first quarter?
No, sales remained stable in Indonesia, Thailand, and Vietnam. The Middle East market saw a 10 per cent increase in sales, reaching HK$80 million, which offered some compensation for the declines elsewhere.
Q.How did Giordano adjust its store footprint during the first quarter?
How did Giordano adjust its store footprint during the first quarter?
Giordano closed two stores in Hong Kong and Macau and reduced its directly operated stores on the Mainland by 31. However, the company also opened 19 new franchised outlets during the same three-month period.
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