BRIEF: Giordano’s profit falls 30% in 2024

Casual clothing seller Giordano International Ltd. (0709.HK) said on Thursday it expects to report that its net profit last year fell 35% or more year-on-year to between HK$205 million ($26 million) and HK$225 million.

It blamed the decline on several factors, including one-off non-recurring expenses stemming from a corporate requisition exercise in the first half of the year and underperformance at its South Korean joint venture. It said a severance package for its former CEO and weak performance for its operations in Greater China also played a role.

Giordano said its five-year strategy, called “Giordano – Beyond Boundaries,” had a positive effect on the company’s revenue growth in the second half of last year. It said its operating expenses last year were stable, though it incurred some increases from its campaign to revitalize the Giordano brand portfolio and recalibrate its distribution channels.

Shares of Giordano opened down 7% at HK$7.44 on Friday and were down 5.8% in the afternoon. The shares are down nearly 20% from their high over the past year.

By Lau Chi Hang

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