GIORDANO INT'L (00709) issues a profit warning, expecting a significant year-on-year decrease in net profit attributable to shareholders to HK$ 205-225 million.

GIORDANO INT'L (00709) announced that the shareholders' net profit for the year ending December 31, 2024 is expected to be between HK$205 million and HK$225 million, a significant decrease compared to the previous year. The announcement stated that the decrease in profit is mainly due to several factors reflected in the group's financial performance in the first half of the fiscal year, which still impact the group's performance during the period, including one-off non-recurring and non-comparable expenses incurred due to the holding of a special general meeting as required by the company in the first half of the fiscal year, as well as a decrease in profit share in the South Korean joint venture due to poor performance in related businesses, along with a decrease in fair value gains, severance payments to the former CEO of the group, poor performance in Greater China, termination of the Hong Kong consumption voucher program, and lack of rental subsidies, all of which affected the group's performance for the entire fiscal year and its investment in the five-year strategy of transitioning to "Giordano - Beyond Boundaries". Although the implementation of the strategy has had a positive impact on the group's revenue growth in the second half of the fiscal year and ensured stable operating expenses, the costs associated with revitalizing the Giordano brand portfolio and realigning channels have increased, including the expansion of the group's online sales while managing the integration of store operations in mainland China.