Giordano profit drops 37pc

Shares of Giordano International (0709) climbed over 3 percent on Wednesday despite the announcement that its 2024 net profit plunged 37 percent year-on-year.

The apparel giant recorded a net profit of HK$216 million last year, down 37.4 percent from a year prior.

It said that was primarily due to the non-recurring expenses last year, a substantial reduction in shared profit from the South Korean joint venture and the underperformance in Greater China, alongside the increased operating expenses of the company’s 5-year transformation program.

Revenue rose by 1.19 percent to HK$3.92 billion and a final ordinary dividend of 6 HK cents was declared.

Gross profit margin declined by 1.4 percentage points to 57 percent, partly due to a shift in sales channel mix and the additional stock clearance of aged inventories.

Giordano said it will strive to achieve revenue at a high single to low double digit compound annual growth rate between 2025 and 2030. It aims for up to 5 percent revenue growth this year.

STAFF REPORTER