Giordano sees clothing sales climb 18pc

The casual-wear chain Giordano International recorded an increase in sales of more than 18 per cent for the third quarter this year, with strong growth in Hong Kong and Taiwan.

The company said sales for the quarter ending September 30 were HK$1.33 billion, bringing the total year-to-date sales to HK$3.98 billion, up 22 per cent year on year.

Gross profit margin improved 0.8 percentage points in the third quarter, helping raise the year-to-date gross margin by 1.5 percentage points to 59 per cent. The company attributed the improvement to increased volumes, a more attractive price mix, a control over markdowns, and effective advertising.

Peter Lau Kwok-kuen, chairman and chief executive of Giordano, said the company achieved sales growth of as much as 24 per cent in the first half of this year owing to strong sales of winter products.

The third-quarter sales increase was 'slower but in line with overall expectations', Lau said.

During the period, the chain retailer added a net 54 outlets globally, bringing total shop numbers to 2,496 across Hong Kong, Taiwan, the mainland, other parts of the Asia-Pacific region and North America.

The Hong Kong and Taiwan markets reported a significant year-on-year increase in the third quarter, with sales growing to HK$414 million from HK$329 million.

The mainland remains the biggest sales contributor, with total sales revenue of HK$439 million.

Giordano's share price rose 1.1 per cent to close at HK$6.23 yesterday. The stock has risen significantly in recent months since Cheng Yu-tung, the property tycoon and chairman of the Chow Tai Fook jewellery chain, used several purchases to raise his Giordano stake earlier this year.

Cheng, who holds about an 18 per cent stake in Giordano, is now its largest single shareholder.