Giordano 2014 Net Profit Decline New Brand Beau Monde Will Revive The Market

Famous casual wear brand Giordano 3 On the evening of 3 June, the 2014 performance report was released, which is similar to that of Lining and Anta, and its performance is not optimistic. According to the report, Giordano's sales decreased by 5% last year, net profit decreased by 38%, and the number of stores decreased by 190 compared with 2642 in 2013. Giordano's performance in mainland China has declined significantly, with sales falling by 9%, with only 6% of the electricity supplier's performance improved. The brand diversification of the company has also slowed down. The performance of Giordano Ladies brand, BSX brand and Eula brand is not satisfactory. The new brand Beau Monde has opened 13 stores, and the brand will open a large number of stores in 2015.

　　 Net profit fell by 38%

The report shows that Giordano realized sales of HK $5 billion 545 million in 2014, down 5% from 5 billion 848 million Hong Kong dollars in 2013, and realized net profit of 408 million yuan, down 38% from 2013's 663 million yuan.

Regionally, in the total performance of 5 billion 545 million, mainland China achieved sales of 1 billion 580 million yuan, Hongkong and Taiwan achieved sales of 1 billion 640 million yuan, sales in other parts of the Asia Pacific region reached 1 billion 362 million yuan, and sales in the Middle East achieved 617 million yuan. In terms of business category, retail and distribution totaled 5 billion 199 million yuan, and wholesale sales to overseas franchisees amounted to $346 million.

The decline in sales led Giordano's gross margin to decrease by 337 million yuan to 3 billion 214 million yuan last year, a decline of 9%, and the average cost of goods increased by 5.3%, resulting in a gross margin of 2.7% to 58% from 60.7% in 2013, resulting in a net profit decrease of 38%.

In addition, the report shows that by the end of 2014, the number of stores in Giordano was 2452, compared with 2642 in 2013, 190.

　　 Mainland China's market performance declined by 9%

Giordano's sales performance declined last year, especially in mainland China. Its total sales in 2014 were 1 billion 580 million Hong Kong dollars, down 9% from 1 billion 727 million Hong Kong dollars in 2013, and the total sales volume in 2014 was 1 billion 887 million yuan, down 10% from 2013's 2 billion 96 million yuan.

Giordano said that sales in the first quarter of the company were particularly weak, and brand sales fell by 15%. The company carried out shop renovation throughout the year to enhance the brand and eliminate unprofitable shops. The number of stores in China was reduced by a large number of reorganized stores. By the end of 2014, the total number of stores in mainland China was 961, compared with 200 in 1161 in 2013. Among them, the number of self operated stores has decreased by 60, and the number of franchised stores has decreased by 140. As a result, inventory pressure has been greatly reduced. Compared with the end of 2013, Giordano has lowered the level of HK $14 million held by franchisees, so that the survival of the company in mainland China is at a healthy level.

Compared to offline stores, Giordano online business performance has been significantly improved, the company's own network platform and in TaoBao The total sales of these platforms, Jingdong and Amazon, amounted to HK $183 million, an increase of 6% over the 174 million yuan in 2013.

Giordano said that in 2014, the company installed 318 terminals in the store to support online shopping and enhanced marketing in O2O, and the company will further develop new technologies in 2015 to enhance consumer experience.

　　 New brand Beau Monde speeds up shop this year.

From the brand point of view, Giordano's 76% sales came from men's wear and women's clothing sales accounted for 24%. In 2014, the sales of men's wear brands dropped by 3%, which was a serious product category affecting the company's performance, while the sales of women's wear brands dropped by 11%.

In order to reverse the trend, Giordano has increased the style of clothing and reduced the importance of core products, but these two strategies have not been successful. At present, Giordano is developing an independent counter for women's clothing. The company has 58 separate counters in mainland China and Thailand, generating a net profit of HK $4 million.

Because of weak performance, the diversification of Giordano brand has also slowed down. G Iordano Ladies The sales volume of the brand increased from HK $374 million to HK $391 million last year, but its operating profit decreased from HK $51 million to HK $40 million. Sales of BSX brand decreased by 6%, and operating profit decreased from HK $24 million to HK $14 million. Eula brand positioning for the quality of women's clothing brand, there are 8 shops settled in department stores, in the pilot stage, the market is acceptable.

Looking back in 2015, Giordano said that because the growth of customer demand in mainland China is still weak and the retail supply on line and line is large, new businesses, especially international brands, will continue to enter the market, which will continue to bring more pressure to the sales and profits of garment retailers. As China's economic growth slows down, the speed of developing franchises will remain moderate. At the same time, it will continue to improve store style and eliminate loss shops.

The company's newly launched leisure brand Beau Monde has landed in Guangdong, Shanghai and Taiwan, and has opened 13 stores. In 2015, the brand will open a large number of new stores in mainland China.