News from the First Textile Network on March 13 (reported by reporter martin): “The originator of casual wear” Giordano International recently disclosed that as of According to the 2020 annual report as of December 31, 2020, during the reporting period, the company achieved operating income of HK$3.122 billion, a year-on-year decrease of approximately 35.66%. The net profit attributable to the parent company was a loss of HK$112 million, compared with a profit of HK$230 million in the same period last year. Hong Kong dollar.
As of December 31, 2020, Giordano’s cash and bank balances were 1.256 billion yuan, a decrease of only 3 million yuan from 1.259 billion yuan in the same period in 2019.
As of the end of 2020, the number of Giordano stores worldwide reached 2,185, a net decrease from 2,375 stores in 2019 190 rooms. During the same period, Giordano had 6,400 employees, a net decrease of 1,300 from 7,900 in the same period last year.
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China’s Hong Kong and Macau markets
Giordano’s business in Hong Kong has been disappointing due to high operating costs. Since 2019, due to well-known events and the epidemic, incoming tourists have stopped and the unemployment rate has increased rapidly. It may take several years for society to fully recover. The company has reduced its business scale by closing loss-making stores with high rents. During the reporting period, the total number of stores was 62 (2019: 73); on the other hand, Macau showed positive signs of recovery.
Mainland China and Taiwan
In the second half of 2020, business in mainland China began to recover. Giordano’s online sales increased by 7.3%, while the number of franchise stores increased by 31 compared with the first half of the year. Mainland China remains Giordano’s main strategic market, and the growth prospects for online sales and franchise networks are very strong; Taiwan’s business rebounded strongly in the fourth quarter, thanks to the improvement of brand image and weakening competition. Giordano’s performance in Taiwan will be better in 2021 Keep up the good work.
Outside Asia-Pacific
In addition to development in the Asia-Pacific region, Giordano is also seeking development in the European and African markets Opportunities, during the reporting period, Giordano opened offline and online sales channels in Kenya, Russia and Mauritius. The company said that although the newly opened franchisee market is not large, it will pay off in the medium to long term. Developing economies will become the focus of developing markets in the future, and as the company establishes a foothold in South Africa and Zambia, as well as in Kenya and Mauritius, the company hopes to reach more customers on the African continent.
Ju Xinghai, an analyst at Guosheng Securities, said that in the post-epidemic era, residents’ consumption willingness has gradually become desensitized to fluctuations in the epidemic, and the trend is improving and steady. Looking back on 2020, household consumption expenditures were suppressed in the early days of the epidemic, and the social retail growth rate increased steadily in the subsequent third and fourth quarters. Even if the epidemic situation has recurred in some cities, the fluctuations in consumer confidence have been smaller. During the superimposed epidemic period, The suppressed consumer demand will be further released in the future, and the overall consumer market will be stable and good.
In Ju Xinghai’s view, for mass apparel brands that rely on mass traffic and have low consumer loyalty, the overall sector in the early stage of the epidemic was greatly affected by the epidemic. In the later period, the business continued to recover positively, and the cash flow performance in the fourth quarter was relatively stable. However, most companies are still in the adjustment stage. The terminal retail sales of leading companies are highly flexible, and leading brands rely on the experience accumulated in the e-commerce field to fully unleash their potential, and their e-commerce business performance is generally good.
As of the trading day before the publication of the First Textile Network, Giordano closed at HK$1.630 per share, an increase of 0.62%, with a market value of HK$2.572 billion.
Public information shows that Giordano was founded in Hong Kong, China in 1981 and was listed in Hong Kong, China in June 1991. In August 1992, Giordano entered the mainland Chinese market and pioneered the The first of its kind retail chain store for casual wear. (First Textile Network Martin)
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