Giordano sales drop 34.6 per cent in March quarter
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Fashion group Giordano says its March quarter sales fell by 34.6 percent as the outbreak of the coronavirus pandemic saw stores shuttered in key markets.
Comparable same-store sales growth was a negative 30.2 percent.
“Since the outbreak of the Covid-19 pandemic, many countries have implemented public health measures and ‘lockdowns’, often resulting in the halting of social and commercial activities,” the company said in a stock-exchange filing.
“Moreover, the outcome of the Sino-US trade conflict remains unclear. All of these factors have adversely and significantly affected consumer sentiment and also foot traffic at our shops in various markets.”
Year on year, Girodano’s global net store count has reduced by 128, most of the closures in Mainland China, where the network has shrunk from 623 to 572. In Hong Kong and Macau the retailer has shuttered a net seven stores.
Questions & Answers
Q.What is the primary reason Giordano's sales dropped in the March quarter?
What is the primary reason Giordano's sales dropped in the March quarter?
Giordano stated that the outbreak of the coronavirus pandemic led to stores being shuttered in key markets. Public health measures and lockdowns halted social and commercial activities, significantly affecting consumer sentiment and foot traffic.
Q.How much did comparable same-store sales decline?
How much did comparable same-store sales decline?
Comparable same-store sales growth for Giordano was a negative 30.2 per cent. This figure indicates the decline in sales from stores that have been open for at least a year, excluding the impact of new openings or closures.
Q.Which other factor has adversely affected consumer sentiment?
Which other factor has adversely affected consumer sentiment?
Besides the pandemic, the company also noted that the outcome of the Sino-US trade conflict remains unclear. This ongoing uncertainty is another factor that has adversely and significantly affected consumer sentiment in their markets.
Q.Where were most of the store closures located?
Where were most of the store closures located?
Most of the 128 net store closures were in Mainland China, where the network decreased from 623 to 572 locations. Also, seven stores were closed in Hong Kong and Macau.
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