Giordano to close six stores amid $112m loss

Giordano International (0709) yesterday said it plans to close six stores in two or three months as it revealed a net loss of HK$112 million last year, compared to a net profit of HK$230 million in 2019.

The company declared a final dividend of 6.9 HK cents per share, or a total dividend of 10.0 HK cents per share for the year.

Group sales declined by 35.7 percent to HK$3.12 billion. Gross margin fell 3.1 percentage points to 55.6 percent.

Sales from mainland China plunged 29.5 percent to HK$701 million, accounting for 22.4 percent of group sales.

Sales from Hong Kong and Macau dived 53.1 percent to HK$362 million, representing 11.6 percent of group sales. Hong Kong business has been disappointing due to the high cost of operating, the company said.

Giordano had 2,185 stores at year-end, down by 190 from a year before.