Giordano International Limited released unaudited interim results for the six months ended 30 June 2026, the second year of its five-year “Beyond Boundaries” strategic plan.

Revenue and Profitability – Group revenue edged down 1.0% year on year to HK$1.91 billion. Excluding Gulf Cooperation Council (GCC) markets, revenue inched up 0.4%. – Net profit attributable to shareholders reached HK$108 million, 10.7% lower than the HK$121 million recorded a year earlier. Management noted that performance in the GCC—impacted by regional conflict—reduced profit by about HK$12 million. – Gross profit rose 1.7% to HK$1.09 billion, as margin widened by 1.6 percentage points to 57.2% on favourable channel mix, firmer pricing and sourcing efficiencies.

Segment Performance – GCC revenue fell 7.3% to HK$342 million amid weaker consumer sentiment and lower tourism; operating profit before tax declined 16.4% to HK$56 million. – Southeast Asia & Australia grew 1.2% to HK$696 million, led by Vietnam, Singapore and Thailand; profit before tax was stable at HK$75 million. – Greater China sales increased 1.3% to HK$726 million, with Mainland China e-commerce up 5.3% and Taiwan posting a 5.9% rebound; profit before tax climbed to HK$15 million from HK$2 million.

Channel Dynamics – Retail sales advanced 0.5% (up 2.9% ex-GCC). Same-store sales slipped 0.9% but would have risen 1.6% excluding GCC. – Online revenue expanded 12.5% to HK$315 million, lifting its contribution to 16.5% of group sales. GCC and Mainland China online channels grew 33.3% and 11.9%, respectively. – Wholesale revenue contracted 12.2% due to planned shipment reductions to South Korea and network optimisation in Mainland China.

Cost Structure and Cash Position – Operating expenses increased 2.2% to HK$967 million, representing 50.5% of revenue (H1 2025: 48.9%), mainly reflecting higher e-commerce platform and logistics costs. – Finance expense fell 17.4% to HK$19 million, largely comprising lease-related interest. – Cash and bank balances net of loans stood at HK$650 million (31 Dec 2025: HK$722 million). – Inventory rose to HK$580 million, with turnover at cost extending to 128 days (H1 2025: 108 days) following deliberate early shipments to mitigate potential logistics disruption.

Dividend An interim dividend of 6.7 HK cents per share has been declared, amounting to approximately HK$108 million and maintaining the company’s policy of returning surplus cash to shareholders.

Strategic Initiatives Management highlighted ongoing execution of the “Digital-First” approach, the roll-out of the Giordano 2.0 brand refresh, tighter inventory controls, and continued investment in e-commerce platforms. Geographic priorities include accelerating growth in Greater China, deepening presence in Southeast Asia, and protecting margins in the GCC while expanding online reach into North America, Europe and India.

Outlook Despite geopolitical and macroeconomic uncertainties—particularly in the Middle East—Giordano reiterates its commitment to margin protection, disciplined cost management and brand revitalisation to position the group for renewed growth in the second half of 2026 and beyond.