Giordano International Expects Solid Turnaround in 2021

Apparel retailer Giordano International has shed further light on its dramatic turnaround through a supplemental positive profit alert and subsequent operations update for the second quarter of 2021.

According to the supplemental profit alert, which was published on Friday, 16th July, the Hong Kong-listed multinational retailer confirmed that it expects to post a profit of at least HK$50 million (US$6.4 million) in the interim, a significant improvement on the $175 million ($22.5 million) loss for the same period just a year ago.

“The turnaround from loss to profit was primarily due to the double-digit sales increase on the relaxation of social-distancing measures, an improved gross margin, the reduction in the group’s operating expenses, the decrease in impairment loss on right-ofuse assets and property, plant and equipment as compared to the HK$71 million impairment made for the corresponding period ended June 30, 2020,” said Chairman and CEO, Dr. Peter Lau.

The fashion group’s operations update for the second quarter, published on 22nd July, further revealed that its Taiwan and Indonesia markets had shown particular promise, until Covid-19 related lockdowns in those markets, which took place in early May and June, temporarily curbed the growth.

That said, it is reported that Taiwan’s sales are trending up once again, with Giordano Middle East’s sizeable business also surging after Ramadan.

It also appears that Giordano’s ongoing efforts behind the scenes are paying off. Over the last two years, the group has successfully reduced its overheads, while putting in place its plans to drive the growth of its online business, its franchise business in emerging markets and to roll-out of new clothing lines.

The group’s operations update confirmed that its online business grew by 12.5% yearon-year, while its corporate news section revealed the signing of new franchisees in various African markets and Central Asia, and recently opened markets, such as Mauritius, saw a consistent increase in store numbers, even during the Covid-19 pandemic.

Mark Loynd, Executive Director of Giordano International who drives the retailer’s overseas market development alongside Managing Director of Giordano Middle East, Ishwar Chugani, said, “We have been using our time wisely during the pandemic, actively turning threats into opportunities. The pandemic has had a profound effect on consumers generally, who have become much more grounded and their expectations of the brands they support have also changed significantly. We have been afforded the chance to speak with potential partners and explain why, as a brand, Giordano will resonate with their customers more than ever before”. He continued, “The pandemic has also allowed us to work on new offerings, such as our simple, yet stylish G-Motion and Silvermark athleisure collections, which arrives at a time of heightened awareness about health and wellbeing, and compliments work-from-home culture”.

Giordano International’s interim results will be published in early to mid-August, 2021.