Hong Kong-based fashion retail giant, Giordano, has experienced a decrease in sales for the third quarter of the year, despite an overall positive performance for the year so far.
The retailer’s third-quarter revenue, ending on September 30, dropped by 1.4 per cent to HK$894 million, equivalent to US$115 million. Sales declined by 8.5 per cent in Southeast Asia and Australia, remained unchanged in Greater China, but impressively jumped by 11.6 per cent in the Gulf Cooperation Council.
Giordano’s e-commerce revenue continued to demonstrate strong progress with an increase of 16.5 per cent, even as offline sales fell by 4.9 per cent. Same-store sales also experienced a slight dip, declining by 0.5 per cent.
Giordano’s management shared that the company has been actively shifting towards high-growth channels and markets as part of its strategic initiatives. They added, “With a focused approach, we are successfully navigating a period of reset with a view to delivering long-term sustainable growth in line with our strategic vision.”
The retailer’s performance for the first nine months of the year remained in the green, with a modest revenue increase of 0.6 per cent.
Despite challenges like unprecedented adverse weather in Greater China, the company’s core business preserved stability with a 0.4 per cent growth in the quarter and a 2.7 per cent growth for the year so far.
The quarter ended with Giordano operating 1,627 stores, marking a net reduction of 122 locations since the start of the year. As part of their inventory optimization plans, inventory also declined by 2.9 per cent year-to-date.
What is Giordano’s percentage of sales decline in the third quarter?
Sales declined by 1.4 per cent, equivalent to HK$894 million, or US$115 million.
How has Giordano’s e-commerce revenue been performing?
Giordano’s e-commerce revenue demonstrated strong progress with an increase of 16.5 per cent.
What is the net change in Giordano’s store count since the beginning of the year?
Giordano net reduced its store count by 122, ending the quarter with 1,627 stores.
