Giordano attributable net profit up 41.1% YoY in 2022

Its revenue rose 12.4% YoY to $481.1m

Hong Kong-listed Giordano reported a 41.1% year-on-year increase in attributable net profit to $34.1m (HK$268m) mainly driven by the Gulf Cooperation Council and Southeast Asian markets.

In a disclosure, Giordano noted that its Group sales were up 12.4% YoY during the period to around $484.1m (HK$3.8b).

Of the total sales, $178.3m (HK$1.4b) were from Southeast Asia and Australia, followed by Mainland China at $85.1m (HK$668M), and the Gulf Cooperation Council at $80.9m (HK$635).

“The sales rebound in the Southeast Asia and the Gulf Cooperation Council markets was substantial owing to innovative marketing supported by adequate inventories, riding on the reopening of the markets to visitors,” it said.

READ MORE: Hong Kong retail sales to climb by 13% in 2023: report

Offline sales accounted for 74.9%, whilst online sales comprised 11.6% of the total. The remaining 13.5% were from wholesale to franchisees.

Giordano said that despite the less volatile business environment in 2023, various geopolitical tensions remain. However, its geographical diversification will help mitigate potential business risks.

“In 2022, the Group was able to increase the average selling prices of all brands. The trend will continue in 2023. To support it, Management will increase investments in product development and marketing,” it said.

“Management will be cautious in expansion through direct-operated stores, especially in markets with high operating costs, such as Hong Kong. Alternatively, the Group will further build its footprint in developing economies through franchising and licensing. We have made encouraging progress in India, Mauritius, Kenya, Ghana and Egypt,” it added.

The company also said that it will ramp up its online business, noting that in mainland China and South Korea, online sales contribution reached almost 40%.

$1 = HK$7.85