Giordano performance trapped warm weather

Profit attributable to shareholders of Giordano (00709) reached RMB 426 million in 2015, which represented a year-on-year increase of 4.4%. Turning to the poor performance of 38.5% in 2014 was due to:

(I) Significant improvement in the operation of the Chinese mainland market: The turnover of 1.451 billion yuan decreased by 8% year-on-year, only 0.5 percentage points less than the previous year, but the operating profit was increased by 52.5% to a substantial increase of 52.0%. In 2014, it made a profit of 47.3% to a mere RMB 59 million. The rare effect was that the sales of cold winter goods were adversely affected by the overheated weather in the fourth quarter, and same-store sales were reduced by 2%. In the second half of the year, they remained at the same level as the previous year. In the first half, it increased by 12%.

Even in the (2) Hong Kong market, the operating conditions were also stabilized: sales of 971 million yuan decreased by 1% year-on-year, gross profit of 646 million yuan was 12 million, and gross profit margin decreased by 6 percentage points from 67.3% to 66.5%. This was due to the "change in the nature of visitors from the Mainland" analyzed by Giordano's management, and the Group's sales promotion through the reduction in prices rose by 10%.

Those who are worth keeping an eye, for (c) cost control and effectiveness: production-based (1) sales cost of 2.284 billion yuan, a 2% decrease from the previous year, a reduction of 1 percentage point from the 3% reduction in the total business volume of 5.381 billion yuan, gross profit 30.97 Billion yuan decreased by 3.6% year-on-year but by 5.9 percentage points less than the previous year, while gross margin decreased by 0.4 percentage points to 57.6%; (2) Sales expenses decreased by 5% from the same period of last year to 556 million in operating profit Yuan increase 2.5% due to.