Retail | Giordano sales contract 9.6 percent

Hong Kong-based clothing retailer Giordano International said that the group’s sales for the first quarter of 2016 dropped 9.6 percent year-on-year to just over HKD1.3 billion. Taking into consideration 2015 exchange rates, sales fell by 7 percent over the period.
According to the company, weak consumer sentiment and cooler weather during the spring season has depressed sales in the Greater China region during the first quarter.
Hong Kong and Macau also recorded a 7 percent decrease in sales, however comparable store sales improved by 1 percent despite government statistics reporting an 11 percent year-on-year decrease in apparel sales figures in Hong Kong over January and February.
The results echo statements from other retailers of late, particularly in the luxury sector, who have opted to expand in Macau at the expense of Hong Kong in recent months.
In other regions, the company reported an unsatisfactory performance in the Middle East which was the result of weak regional economic conditions as well as merchandise issues, the latter of which the company says has now been rectified. Meanwhile, Southeast Asian markets have shown recent sales growth following the launch of new merchandise.