Sales rise marginally at apparel retailer Giordano in Q1

30 May '12

5 min read

“Nevertheless we continue to maintain our discipline regarding pricing and inventory management and this is delivering strong operating cash flow. At the same time we continue to develop our organization in China. The decentralization of management is generating greater initiative in local marketing and branding as well as enabling us to react more quickly to customer taste and requirements in different regions” added Dr. Lau.

“Mainland China remains the key market for the Group's growth strategy. We continue to work with our franchisee network to support them with improved merchandising and marketing. Our design centre in Dongguan is now developing products directly aimed at the China market.

“Despite weaker demand and intense price competition, we remain confident that we can face down the headwinds in this major market and deliver steady profitable growth going forward. Furthermore we continue to see significant profitable growth across other markets, particularly Hong Kong, Taiwan and developing markets in South East Asia such as Indonesia.

“Our innovative and exciting partnership with Disney in Greater China shows that our product design and marketing expertise is continuously improving. Management teams in these markets are well placed to take advantage of economic development and growth in these regions on the back of strong operational excellence and effective work processes already established in these businesses” continued Dr. Lau.

Dr. Lau concluded, “So far this year it has been challenging to build on the “perfect first quarter” we had in 2011 and headwinds have been slightly heavier than expected; nonetheless we continue to deliver profitability and to reduce our inventory levels from the levels we had at the year end.

“We have initiated marketing and merchandise campaigns across our China business. We continue to improve business processes and operating efficiencies across our operations and remain optimistic that Giordano will continue to deliver profitable growth in 2012.”

Giordano is a leading international retailer of men's, women's and children's apparel under the brand names Giordano, Giordano Ladies, Giordano Junior, Concepts One and BSX.

Giordano International Limited

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