Too Calm "Giordano 2020" Decline In First Quarter Results

The change of times, the "changeable" of consumers, and the brand's evolution into "one hundred year brand", there are too many exits. As a synonym for youth fashion, Giordano seemed to be silent for a long time, or was overwhelmed by the competition of head gangster.

Founded in 1981, Giordano was successfully listed in Hongkong in June 1991, and entered the mainland market in August the following year. It created the first place of China's casual wear retail chain store, grabbing a large market and playing an important role in the apparel industry. But in recent years, this once leading dragon has lost its strong demeanor and is hard to return to the years of spectacular achievements.

In Giordano's latest quarterly results for the first quarter of 2020, the report showed that in the first quarter of 2020, Giordano's global brand sales were HK $1 billion 57 million, down 34.6% from last year, compared with last year's sales growth rate of 30.2%. Among them, sales volume in mainland China is HK $151 million, Taiwan is HK $133 million, Hongkong and Macao are HK $110 million.

In this regard, Giordano said that since the outbreak of the epidemic, many public health measures have been implemented, resulting in social business pause, which seriously affects consumer sentiment and the flow of Giordano shops in many markets.

Although Giordano said the decline in performance was due to the impact of the epidemic, according to public information, since 2017, Giordano's mainland China and Hong Kong and Macao markets have shown signs of declining sales, showing a marked decline.

Compares Giordano's sales performance in mainland China and Hong Kong and Macao in 2017 and 2019, with sales in mainland China slipped from 23.87% Hong Kong dollars in 22017 to HK $995 million in 2019, and sales in Hong Kong and Macao fell from 20.33% Hong Kong dollars in 2017 to 20.33% Hong Kong dollars in 2019 to HK $772 million in 2019.

It is worth noting that during the most serious period of the epidemic, the sharp decline in retail sales has been expected. More brands will focus on online sales. Lining, red dragonfly, Anta and other brands have accelerated the online layout, and the boom in live goods has not dissipated so far.

Giordano's response was obviously "calm" on the occasion of the double channel parallel of the major brand overweight line. According to the report, Giordano's online performance in the first quarter was HK $59 million, down 18.06% compared to the same period. Giordano once said in the announcement: "the fierce competition on the Internet, especially the third party platform, makes the situation worse. The management maintains to improve product mix and continue to expand e-commerce in other parts of the Asia Pacific market to consolidate our e-commerce business.

Giordano's "midlife crisis" has obviously arrived. The 2020 is to continue to be silent or to find out the trend. Brand children's clothing network will continue to pay attention.