Date
24 March 2017
Chairman Lau Kwok-kuen (left)  expects Hong Kong rental costs to ease when the US raises interest rates, possibly in September. Photo: HKEJ
Chairman Lau Kwok-kuen (left) expects Hong Kong rental costs to ease when the US raises interest rates, possibly in September. Photo: HKEJ

Giordano benefits from store closures

Giordano International Ltd. (00709.HK) posted 19.5 percent growth in net profit for the first half, partly thanks to the closure of some costly shops worldwide.

Net profit came in at HK$208 million (US$37.15 million), helped by a 6 percent increase in same-store sales which had dropped for two consecutive years, the Hong Kong Economic Journal reports.

The company shut down 74 stores worldwide, including five in Hong Kong and Macau, to curb rental costs.

It took over management of 37 stores in mainland China.

Chairman Lau Kwok-kuen expects Hong Kong rental costs to ease when the United States raises interest rates, possibly in September.

However, Giordano has no plans to open new shops in Hong Kong for the time being.

It may launch franchise stores in Pakistan and the Middle East, where it plans to open 20 to 30 stores.

[Chinese version中文版]

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