Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
GIORDANO INTERNATIONAL LIMITED
(Incorporated in Bermuda with limited liability)
(Stock Code: 709)
UNAUDITED OPERATIONS UPDATE FOR
THE THREE MONTHS ENDED SEPTEMBER 30, 2019
The board of directors (the "Board") of Giordano International Limited (the "Company") presents the unaudited operations update of the Company and its subsidiaries (the "Group") for the three months ended September 30, 2019. This announcement is made pursuant to Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Shareholders and potential shareholders of the Company are advised to exercise caution when dealing in the shares of the Company.
SUMMARY OF OPERATIONS UPDATE
Table 1: Overview of Group sales
Three months ended Sep 30 | Nine months ended Sep 30 | |||
(In HK$ million) | 2019 | 2018 | 2019 | 2018 |
The rest of Asia Pacific | 349 | 355 | 1,156 | 1,193 |
Mainland China | 208 | 251 | 737 | 932 |
Hong Kong and Macau | 169 | 226 | 590 | 703 |
The Middle East | 153 | 134 | 497 | 469 |
Taiwan | 129 | 142 | 430 | 498 |
Wholesale sales to overseas franchisees | 67 | 68 | 207 | 241 |
Group sales1 | 1,075 | 1,176 | 3,617 | 4,036 |
Global brand sales2 | 1,319 | 1,434 | 4,472 | 4,842 |
Group comparable store sales ("CSS") growth3 | (10.3%) | (2.8%) | (9.1%) | 2.9% |
Inventories at period end | 492 | 525 | ||
Table 2: Group sales by channel
Three months ended Sep 30 | Nine months ended Sep 30 | |||
(In HK$ million) | 2019 | 2018 | 2019 | 2018 |
Physical stores | 881 | 959 | 2,983 | 3,267 |
E‐business | 44 | 50 | 176 | 213 |
Retail sales | 925 | 1,009 | 3,159 | 3,480 |
Wholesale sales to franchisees | 150 | 167 | 458 | 556 |
Group sales | 1,075 | 1,176 | 3,617 | 4,036 |
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During the quarter, Group sales decreased by 8.6%, or 7.1% if translated at constant exchange rate, while group CSS was down by 10.3%. Our Middle East markets registered strong growth while Mainland China, Hong Kong and Macau recorded notably poor sales.
Table 3: Store portfolio
Store numbers | |||
at Sep 30 | |||
2019 | 2018 | ||
Retail and Distribution | |||
Mainland China | |||
Franchised stores | 631 | 627 | |
Directly-operated stores | 276 | 305 | |
Hong Kong and Macau | 75 | 75 | |
Taiwan | 197 | 199 | |
The rest of Asia Pacific | 602 | 595 | |
The Middle East | |||
Franchised stores | 31 | 39 | |
Directly-operated stores | 145 | 145 | |
Overseas franchisees | 423 | 422 | |
Total | 2,380 | 2,407 | |
Table 4: System inventories
At | |||
Sep 30 | Dec 31 | Sep 30 | |
(In HK$ million) | 2019 | 2018 | 2018 |
Inventories held by the Group | 492 | 552 | 525 |
Inventories held by 48.5% South Korea joint venture | 217 | 200 | 197 |
Inventories held by franchisees in Mainland China | 91 | 94 | 90 |
Finished goods at suppliers (not yet shipped) | 31 | 27 | 31 |
Total system inventories | 831 | 873 | 843 |
By Order of the Board
LAU Kwok Kuen, Peter
Chairman and Chief Executive
Hong Kong, October 18, 2019
As at the date of this announcement, the Board comprises three executive directors; namely, Dr. LAU Kwok Kuen, Peter (Chairman and Chief Executive), Dr. CHAN Ka Wai and Mr. Mark Alan LOYND; two non-executive directors; namely, Dr. CHENG Chi Kong and Mr. CHAN Sai Cheong; and four independent non-executive directors; namely, Dr. Barry John BUTTIFANT, Mr. KWONG Ki Chi, Professor WONG Yuk (alias, HUANG Xu) and Dr. Alison Elizabeth LLOYD.
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3
Group sales refer to consolidated sales and include retail sales from directly-operated stores and wholesale sales to all overseas/non-consolidated franchisees.
Global brand sales are at 2019 exchange rates, and are greater than Group sales to include the total of Giordano retail sales, in directly-operated stores, franchised stores and stores operated by a joint venture.
Group CSS are total Giordano brand sales of consolidated subsidiaries, at constant exchange rates, from existing directly-operated stores and franchised stores that have been fully operating in the same prior period.
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Giordano International Ltd. published this content on 18 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2019 04:28:06 UTC