Giordano targets expansion in China

Hong Kong-based casual wear retailer Giordano International<709> said it aims to increase the number of its stores in the mainland - its largest market - to 1,000 in the next two years from the existing 770 outlets, The Standard reported.

In the group's interim results released yesterday, its turnover rose 15.2% to HK$2.33 billion compared with the same period last year. Earnings per share were HK$0.096.

The group also declared a special dividend of HK$0.02 per share on top of a proposed HK$0.045 interim dividend per share.

However, its net profit fell 5.3% to HK$143 million from HK$151 million, and gross profit margin also decreased by 240 basis points to 48.1%. The group put the blame on the unseasonably warm weather.

In June, Giordano was reported to be in talks with three global apparel chains, Hong Kong's Esprit Holdings Ltd, Japan's Fast Retailing Co and Spain's Inditex SA, which intended to buy a stake in it. The speculation has driven the group's share a record high.

The group said in an earlier report that 60% of its revenue from mainland China. It owns 1,767 outlets, including 239 in Taiwan and 151 in Hong Kong and Singapore combined, with others in Australia, Japan, South Korea and the Middle East. In the second quarter alone, the group opened 31 new outlets in the mainland.

Giordano shares closed yesterday at HK$3.70, up 1.65%.