Giordano (0709) year net down 38% to HK$408m; div HK14.5 cts

    Giordano International (00709) said its profit attributable to shareholders for the year ended 31 December 2014 dropped 38.46% year-on-year to HK$408 million.
  Its basic and diluted earnings per share were HK26 cents and HK25.9 cents.
  Sales amounted to HK$5,545 million, a decrease of 5.2% from a year earlier. Sales in Hong Kong fell 6% during the year. Comparative same store sales declined by 5%. Global brand sales reduced by 4% in the year as did comparable same store sales. In the first half of the year, sales weakened sharply in Greater China, Singapore and South East Asia. In the second half of the year, same store sales in Mainland China and Taiwan returned to low digit growth, with some pick up apparent in South East Asia in the fourth quarter. Markets in the Middle East and Korea showed weak demand and declining sales in the second half of the year.
  Gross Profit Margin declined by 2.7 percentage points from 60.7% to 58%. The decrease was due to price discounting in markets where price competition was fierce and increases in purchased cost due to depreciation of South East Asian currencies. Gross margin decline against prior year narrowed in the second half relative to the first half from 3.5 percentage points to 2 percentage points.
  The proposed final dividend is HK14.5 cents (2013: HK24 cents) per share, payable on or about 26 June.