Giordano Int'l (00709.HK) announced on July 18th that, based on the preliminary evaluation of the unaudited combined management accounts for the six months ended June 30, 2024, as well as the information currently available to the board of directors, the expected profit for the six months ending June 30, 2024 is expected to be between HKD 0.11 billion and HKD 0.13 billion, a significant decrease from the same period of the previous year.
The company believes that the performance in the Gulf Cooperation Council and Southeast Asian markets is stable. The decrease in profit is mainly due to: (a) one-time expenses incurred by convening a special shareholders' meeting during the period at the request of shareholders; (b) a decrease in the share of profit from the joint venture in South Korea; (c) negative growth of comparable store sales in mainland China, which is due to the high level of old inventory resulting from the lack of investment in brand and product in the past in mainland China; and (d) the weakening of the Hong Kong business due to the impact of the trend of Hong Kong people traveling to the mainland for consumption, the termination of consumption voucher plan, and the lack of rental subsidy.