Giordano International released its unaudited interim results for the six months ended 30 June 2026.
• Revenue edged down 1.0 % year-on-year to HK$1.91 billion, mainly due to a 7.1 % contraction in Gulf Cooperation Council (GCC) sales; excluding the GCC, Group revenue rose 0.4 %.
• Gross profit increased 1.7 % to HK$1.09 billion, with gross margin expanding 1.6 percentage points to 57.2 %, supported by a higher direct-to-consumer mix, tighter pricing discipline and sourcing savings.
• Operating profit fell 13.4 % to HK$155 million, while profit attributable to shareholders slipped 10.7 % to HK$108 million. Basic and diluted EPS were both HK¢6.7.
• The Board declared an interim dividend of HK¢6.7 per share (2025: HK¢7.5), equivalent to a payout of about HK$108 million and matching EPS.
Operational highlights
• E-commerce sales jumped 12.5 % year-on-year, with GCC online turnover up 33.3 % and Mainland China up 11.9 %.
• Retail sales added 0.5 % overall and 2.9 % excluding the GCC. Same-store sales declined 0.9 % but would have risen 1.6 % without the GCC drag.
• Greater China retail revenue grew 1.3 %; Taiwan rebounded 5.9 %, Hong Kong and Macau were flat, and Mainland China slipped 0.9 % amid network restructuring.
• Southeast Asia & Australia revenue increased 1.2 %, led by Vietnam (+10 %), Singapore (+4.7 %) and Thailand (+4.8 %); Indonesia was broadly flat as local sourcing shifted to offset tighter import controls.
• GCC delivered HK$342 million revenue, down 7.1 %, reflecting weakened consumer sentiment and tourism amid regional tensions.
Balance sheet and cash flow
• Net cash (cash and bank balances less bank loans) stood at HK$650 million versus HK$722 million a year earlier, after planned inventory build-up.
• Inventory rose to HK$580 million (2025: HK$513 million); inventory turnover on cost lengthened to 128 days (2025: 108 days) as the Group shipped earlier to mitigate potential logistics disruption.
• Net operating cash inflow reached HK$271 million; capital expenditure totaled HK$47 million, mainly for store upgrades and relocations.
Strategic update
2026 marks the second year of the five-year “Beyond Boundaries” plan. Management highlighted: – Continued push on “Digital-First” initiatives and omnichannel integration. – Brand revamps under the “Giordano 2.0” programme and ongoing repositioning of “gl” (Giordano Ladies). – Focused reset in Mainland China, with resources concentrated on tier-1 and tier-2 city malls in southern China. – Cost and inventory discipline to protect margins and cash flow amid macro and geopolitical uncertainties.
The Board reiterated confidence in the Group’s long-term growth prospects, citing resilient demand outside the GCC and a strong net cash position to fund strategic priorities.