The Hong Kong-listed casual apparel retailer Giordano International has published its annual financial report for 2008 and states that its revenue in 2008 increased by 6.3% to HKD4.71 billion while its net profit reached HKD311 million.
According to the report, a major part of Giordano's revenue was from its businesses in mainland China. During the period, the revenue from its mainland businesses increased by 25% year-on-year to HKD1.689 billion and its gross profit margin increased by 180 basis points.
In the second half of 2008, Giordano suspended its expansion in overseas markets and the company has said it will close unprofitable stores to focus its attention on the mainland market.
It is understood that over the last year, Giordano reduced the number of stores in Hong Kong from 92 to 82; the number of stores in Taiwan was reduced from 210 to 192; in Singapore numbers were reduced from 53 to 51; and the number of stores in South Korea was reduced from 173 to 167. During the same period, the company opened 89 new stores in mainland China. As at December 31, 2008, Giordano had opened 909 retail stores in mainland China.
Peter Lau, chairman and CEO of Giordano International, said that the company will continue to expand its business in mainland China and it plans to open 90 new stores in 2009, with the same growth rate as that of 2008. Lau said the company will also continue to reduce the number of stores in other marketplaces, maintaining the total number of stores at about 2,000.