Presentation is loading. Please wait.

Presentation is loading. Please wait.

Giordano International Limited (Stock code: 709) November 13, 2008 (Thursday) 2008 Third Quarter Update.

Similar presentations


Presentation on theme: "Giordano International Limited (Stock code: 709) November 13, 2008 (Thursday) 2008 Third Quarter Update."— Presentation transcript:

1

2 Giordano International Limited (Stock code: 709) November 13, 2008 (Thursday) 2008 Third Quarter Update

3 November 13, 2008Giordano 2008 Third Quarter Update2 Group Operations Highlights Continuing operations 1 Nine Months Ended Sep 30, 2008 YOY Change Group turnover+ 9.0% Retail & Distribution turnover in Mainland China+ 31.2% Mainland China gross margin+ 410 bps Mainland China gross profit+ 43.0% Group gross margin (2007: 50.1%) 51.3% / bps Group gross profit+ 11.6% Net cash & bank balances (in HK$ millions) 425 Inventory turnover on sales (2007: 31 days) 30 days 1 Excluding the results of Placita, the Group’s main garment manufacturing subsidiary, which has been substantially divested in Aug 2008.

4 November 13, 2008Giordano 2008 Third Quarter Update3 YOY Change 3 months ended Sep 30, months ended Sep 30, months ended Jun 30, 2008 Retail & Distribution Turnover+ 3.9%+ 9.4%+ 12.1% Group turnover %+ 9.0%+ 11.6% Group gross profit %+ 11.6%+ 15.1% 1 Continuing operations, excluding the results of Placita, the Group’s main garment manufacturing subsidiary, which has been substantially divested in Aug Group Operations Highlights

5 November 13, 2008Giordano 2008 Third Quarter Update4 Turnover by Brand Nine Months Ended Sep 30, 2008 Giordano & Giordano Junior 84% of turnover (2007: 83%) Turnover up 10.9% Same store sales down 0.7% Net addition of 34 stores 1,757 stores as at Sep 30, 2008 BSX 5% of turnover (2007: 7%) Turnover down 23.4% YOY Same store sales down 0.1% Launched in South Korea and the Middle East Net reduction of 6 outlets 111 stores as at Sep 30, 2008 Giordano Ladies 6% of turnover (2007: 6%) Turnover up 11.7% Same store sales up 3.6% Net addition of 7 stores 46 stores as at Sep 30, 2008 Launching in the Philippines in 4Q08 Giordano Concepts 5% of turnover (2007: 4%) Turnover up 19.3% Same store sales down 7.2% Net addition of 15 stores 29 stores as at Sep 30, 2008 Launching in the Middle East and Philippines in 4Q08

6 November 13, 2008Giordano 2008 Third Quarter Update5 Turnover YOY Change 3 months ended Sep 30, months ended Sep 30, months ended Jun 30, 2008 Giordano & Giordano Junior+ 6.0%+ 10.9%+ 13.3% Giordano Ladies+ 8.7%+ 11.7%+ 13.3% Giordano Concepts- 1.2%+ 19.3%+ 31.7% BSX- 30.6%- 23.4%- 19.6% Retail & Distribution Total + 3.9%+ 9.4%+ 12.1% Performance Review by Brand

7 November 13, 2008Giordano 2008 Third Quarter Update6 Same Store Sales 1 YOY Change 3 months ended Sep 30, months ended Sep 30, months ended Jun 30, 2008 Giordano & Giordano Junior- 2.9%- 0.7%+ 0.1% Giordano Ladies- 1.7%+ 3.6%+ 5.8% Giordano Concepts- 21.0%- 7.2%- 0.1% BSX- 13.9%- 0.1%+ 4.2% Retail & Distribution Total - 4.7%- 0.7%+ 0.8% Performance Review by Brand 1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration

8 November 13, 2008Giordano 2008 Third Quarter Update7 Retail & Distribution Turnover by Market Nine Months Ended Sep 30, 2008 Mainland China 33% of turnover (2007: 29%) Turnover up 31.2% YOY Gross margin up by 410 bps Added 61 outlets 881 outlets as at Sep 30, 2008 Hong Kong 18% of turnover (2007: 21%) Turnover down 3.3% YOY Net reduction of 6 outlets 86 outlets as at Sep 30, 2008 Taiwan 14% of turnover (2007: 15%) Turnover down 0.5% YOY Net reduction of 11 outlets 199 outlets as at Sep 30, 2008 Singapore 8% of turnover (2007: 9%) Turnover down 5.1% Number of stores unchanged Australia, 5% (5%) 1 Indonesia, 4% (4%) 1 Malaysia, 4% (3%) 1 Thailand, 3% (3%) 1 Others, 11% (11%) 1 1 YOY figures in brackets

9 November 13, 2008Giordano 2008 Third Quarter Update8 Turnover YOY Change 3 months ended Sep 30, months ended Sep 30, months ended Jun 30, 2008 Mainland China+ 25.3%+ 31.2%+ 34.1% Hong Kong- 9.9%- 3.3%- Taiwan- 11.0%- 0.5%+ 4.7% Singapore- 3.7%- 5.1%- 5.5% Retail & Distribution Total %+ 9.4%+ 12.1% South Korea %- 3.5%+ 2.5% Middle East %+ 24.2%+ 22.3% 1 South Korea and Middle East sales are not consolidated into Group sales. On Sep 30, 2008, the Group held 48.8% in Giordano South Korea and 20.0% in Giordano Middle East. Performance Review by Market

10 November 13, 2008Giordano 2008 Third Quarter Update9 Same Store Sales 1 YOY Change 3 months ended Sep 30, months ended Sep 30, months ended Jun 30, 2008 Mainland China+ 2.3%+ 9.9%+ 11.8% Hong Kong- 8.0%+ 0.3%+ 3.8% Taiwan- 14.0%- 2.5%+ 2.2% Singapore- 3.5%- 11.5%- 13.8% Retail & Distribution Total %- 0.7%+ 0.8% South Korea %+ 0.9%+ 2.1% Middle East %+ 19.0%+ 17.0% 1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration 2 South Korea and Middle East sales are not consolidated into Group sales. On Sep 30, 2008, the Group held 48.8% in Giordano South Korea and 20.0% in Giordano Middle East. Performance Review by Market

11 November 13, 2008Giordano 2008 Third Quarter Update10 Mainland China continues to grow – Twenty-two stores, including new flagship stores in Guangzhou, Hangzhou, Wuhan and Chengdu, were added in 3Q08 – 3Q08 sales up by 25.3% YOY in Mainland China – Turnover up by 31.2% and gross profit up by 43.0% YOY in the nine months ended Sep 30, 2008 – Despite unseasonably warm weather and uncertain economic outlook, sales still increased by high single digit YOY in Oct 2008 Markets outside Mainland China hit by global financial tsunami – Hong Kong, Taiwan and Singapore sales down respectively by 9.9%, 11.0% and 3.7% YOY in 3Q08 – Hong Kong and Taiwan sales were down by double digit in Oct 2008 – Group turnover decreased by high single digit YOY in Oct 2008 Review & Outlook

12 November 13, 2008Giordano 2008 Third Quarter Update11 Continue to invest in Mainland China – Focus on 2 nd and 3 rd cities where growth prospects are expected to be good due to the recently announced stimulus package New store projects and hiring outside Mainland China on hold Rigorous inventory control – Inventory turnover on sales for nine months ended Sep 2008 was 30 days, one day better than 2007 Conservative financial management – Net cash of HK$425 million as at Sep 30, 2008 kept in commercial banks Capitalize on Giordano’s reputation for attentive service, excellent quality and superior value to build customer base Review & Outlook

13 November 13, 2008Giordano 2008 Third Quarter Update12 No. of outlets As at Sep 30, 2008 As at Dec 31, 2007 Change Giordano & Junior Giordano Ladies Giordano Concepts BSXOthersTotal Mainland China Hong Kong Taiwan Singapore Australia Malaysia Indonesia Thailand South Korea Middle East & India Philippines Japan Others Total1, ,9491, Global Retail Network


Download ppt "Giordano International Limited (Stock code: 709) November 13, 2008 (Thursday) 2008 Third Quarter Update."

Similar presentations


Ads by Google