Apparel retailer Giordano International H1 revenue and profit decline on GCC weakness

Giordano International

26/08/2026 05:35

Overview
Hong Kong apparel retailer's H1 revenue and net profit declined yr/yr amid GCC market weakness
Company saw 12.5% e-commerce growth and improved gross margin despite softer wholesale trends
Results reflect resilience in core markets and actions to protect channel health

Outlook
Giordano expects to remain focused on enhancing margins through disciplined in-season allocation
Company expects business re-acceleration as regional conditions normalise
Giordano will relaunch proprietary sites in Singapore, Hong Kong in Q4 and other markets in 2027

Result Drivers
GCC WEAKNESS - Co said underperformance in GCC markets due to the ongoing Middle East crisis weighed on revenue and profit
E-COMMERCE GROWTH - E-commerce business grew 12.5% in H1, driven by 'Digital-First' strategy
MARGIN IMPROVEMENT - Gross profit margin widened by 1.6 percentage points, driven by channel mix, pricing, and cost savings

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
HK$1.91 bln
 
H1 Net Income Attributable
 
HK$108 mln
 

Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for Giordano International Ltd is HK$1.92, about 38.1% above its August 25 closing price of HK$1.39
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 25 - China's EEKA Fashion H1 revenue falls on weak store sales
Aug 25 - Sportswear maker Xtep International H1 revenue dips 0.6% as core brand weakens
Aug 25 - China's Shenzhou International H1 sales fall 5.3%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)