1 / 18

Giordano International Limited (stock code: 709) September 1, 2008

2008 Interim Results. Giordano International Limited (stock code: 709) September 1, 2008. Core business achieving steady growth. Solid fundamentals. 1 As at December 31, 2007 . Stable return to shareholders. 1 Continuing and discontinuing operations combined.

bhebert
Download Presentation

Giordano International Limited (stock code: 709) September 1, 2008

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 2008 Interim Results Giordano International Limited (stock code: 709) September 1, 2008

  2. Core business achieving steady growth Giordano 2008 Interim Results

  3. Solid fundamentals 1 As at December 31, 2007 Giordano 2008 Interim Results

  4. Stable return to shareholders 1 Continuing and discontinuing operations combined Giordano 2008 Interim Results

  5. Exit manufacturing to focus on retail • Completed divestiture of remaining 51% shareholding in primary manufacturing subsidiary in August 2008 • Sale of 21% shareholding for HK$22.9 million • Conversion of balance 30% shareholding into non-voting preferred shares with guaranteed annual dividend of HK$2.6 million • Call option at HK$32.7 million exercisable within 5 years and put option at HK$27.8 million exercisable after 2 years • Expected to record a gain of HK$14.7 million on sale of its 21% interest and a non-cash gain of HK$16.1 million from the conversion of the remaining 30% interest into preferred shares • Residual manufacturing operations to be consolidated • Reduced shareholding in Dongguan garment manufacturing JV from 49% to 9.9% in June 2008 • Recorded a one-time gain on disposal of HK$17 million Giordano 2008 Interim Results

  6. Exit manufacturing to focus on retail 1 Combined results including both continuing and discontinuing operations 2 Year-on-year change Giordano 2008 Interim Results

  7. Steady growth in core retail business • Better performance reflects consumer acceptance of our branding efforts • 1H08 gross margin increased by 130 basis points • 1H08 gross profit increased by 15.0% YOY • Comparable store sales increased by 0.8% Giordano 2008 Interim Results

  8. Retail & Distribution turnover by brand For the six months ended June 30, 2008 • BSX / Bluestar Exchange • 5% of 1H08 turnover (1H07: 7%) • Turnover down 19.6% • Comp store sales up 4.2% • Net reduction of 8 outlets • Giordano Concepts • 5% of 1H08 turnover (1H07: 4%) • Turnover up 31.7% • Comp store sales down 0.1% • Added 10 stores in 1H08 • Giordano Ladies • 5% of 1H08 turnover (1H07: 5%) • Turnover up 13.3% • Comp store sales up 5.8% • Gross margin up 80 basis pts • Added 2 stores in 1H08 • Giordano & Giordano Junior • 85% of 1H08 turnover (1H07: 84%) • Turnover up 13.3% • Comp store sales up 0.1% • Gross margin up 140 basis pts • Added 31 outlets in 1H08 Giordano 2008 Interim Results

  9. Mainland China • 34% of 1H08 turnover (1H07: 29%) • Turnover up 34.1% in 1H08 • 859 out of 1,934 stores worldwide Others, 11% (10%)1 Thailand, 3% (3%)1 Malaysia, 3% (3%)1 Indonesia, 4% (4%)1 Australia, 5% (6%)1 Singapore, 8% (9%)1 Hong Kong, 18% (21%)1 Taiwan, 14% (15%)1 Retail & Distribution turnover by market For the six months ended June 30, 2008 1 YOY figures in brackets Giordano 2008 Interim Results

  10. MAINLAND CHINA China focus yielding strong results • Eight consecutive quarters of double-digit turnover growth since 3Q06 • Turnover increased by 34.1% (1H07: up 26.9%) • Comp store sales increased by 11.8% (1H07: up 20.6%) • ASP up 23.1% in RMB terms and gross margin expanded by 270 basis pts from improved merchandise mix • 39 stores added in 1H08 1 As at December 31, 2007 Giordano 2008 Interim Results

  11. HONG KONG Stable performance in a challenging market • Total turnover stable (1H07: up 2.6%) • Comp store sales increased by 3.8% (1H07: up 7.8%) • ASP up 23.8% and gross margin expanded by 340 basis pts from improved merchandise mix • Turnover of Giordano brands (Giordano, Junior, Ladies and Concepts) up 6.0% and comp store sales up 3.5% 1 As at December 31, 2007 Giordano 2008 Interim Results

  12. TAIWAN Re-engineering efforts gaining traction • Turnover increased by 4.7% (1H07: down 0.6%) • Comp store sales increased by 2.2% (1H07: down 3.5%) due to improved merchandising and marketing 1 As at December 31, 2007 Giordano 2008 Interim Results

  13. SINGAPORE Reorganizing to improve operations • Turnover down 5.5% in 1H08 (1H07: up 5.3%) • Experienced Hong Kong management team brought in to reorganize operations 1 As at December 31, 2007 Giordano 2008 Interim Results

  14. SOUTH KOREA Turnaround on track • Turnover increased by 2.5% (1H07: down 7.0%) • Comp store sales increased by 2.1% (1H07: down 12.0%) • Gross margin increased by 50 basis pts • Gross profit increased by 3.5% • Five stores added in 1H08 Note: South Korea sales are not consolidated into Group sales. On June 30, 2008, the Group held 48.8% in Giordano South Korea. 1 As at December 31, 2007 Giordano 2008 Interim Results

  15. MIDDLE EAST Continued expansion in a buoyant market • Turnover grew by 22.3% (1H07: up 17.4%) • Comp store sales increased by 17.0% (1H07: up 2.4%) • Six stores added in 1H08 Note: Middle East sales are not consolidated into Group sales. On June 30, 2008, the Group held 20.0% in Giordano Middle East. 1 As at December 31, 2007 Giordano 2008 Interim Results

  16. Outlook • Continue to focus on driving rapid growth in Mainland China • New flagship stores opened in Hangzhou and Wuhan in August • Additional flagship stores to be opened in Beijing, Guangzhou and Chengdu • Increase advertising and promotion efforts • Sales grew by double-digit in July and August • Target to maintain double-digit turnover growth in 2H08 • Intensify brand building efforts to drive ASP and gross margin increases in all markets • Reinforce turnaround efforts in Taiwan, Singapore and South Korea Giordano 2008 Interim Results

  17. GLOBAL RETAIL NETWORK Giordano 2008 Interim Results

  18. Q&A 2008 Interim Results Giordano International Limited(stock code: 709)

More Related