GIORDANO INT'L (00709) announced its interim results for 2025, reporting revenue of HK$1.934 billion, representing a year-on-year increase of 1.63%. The company's shareholders' attributable profit reached HK$121 million, up 0.83% compared to the same period last year. Basic earnings per share stood at 7.5 HK cents, with an interim dividend of 7.5 HK cents per share.

The gross margin for the first half of 2025 declined by 3.3 percentage points to 55.6%, resulting in a 3.9% decrease in gross profit for the period. The margin compression was partially attributed to changes in channel mix, as online and wholesale businesses contributed more significant growth than originally planned, though these channels typically carry lower gross margins compared to offline operations. This situation was further exacerbated by the strategic clearance of aged inventory accumulated over previous years as planned. Additionally, rising merchandise costs contributed to further pressure on gross margins.

Excluding the impact of non-Giordano brands, the gross margin and gross profit would have decreased by only 2.9 percentage points and 1.1% respectively. Management expects gross margins to begin improving in the second half of the year, when inventory levels will be more robust, coupled with the professionalization of procurement functions and processes, ultimately enabling the company to enhance product cost-effectiveness while maintaining Giordano's consistent product quality.