Giordano, the Hong Kong-based retailer of mens, womens and kidswear, witnessed a slump of 17.7 per cent in its Greater China sales during the first quarter. The period also saw the group-wide sales of the retailer go down by 10.8 per cent or 8.5 per cent on a constant currency basis.
The fashion retailer, in a stock exchange filing recently, attributed the decline in sales to unusually warm climate as well as the uncertainty originating from the US-China trade war.
Meanwhile, poor performance in Greater China was marginally compensated by Giordano’s improved performance in its Middle East market, where its sales increased by 10 per cent to clock HK$80 million.
Giordano’s sales in Mainland China dipped from US $ 378 million to US $ 295 million; similarly there was a fall from US $ 248 million to US $ 225 million in Hong Kong and Macau markets. Taiwan too was a losing proposition for the retailer with the sales going down from US $ 201 million to US $ 161 million.
In the remaining Asia-Pacific region, Giordano saw a drop in sales to US $ 398 million from US $ 422 million. Notably, in the 3 months till 31 March 2019, the inventories grew from HK$507 million to $512 million.
The first quarter, however, saw the retailer maintain stability in sales in its Vietnam, Thailand and Indonesia markets.
