Giordano International Limited · HKEX:709
Giordano International — FY2024 Earnings Presentation
33 slides from Giordano International's earnings presentation, Mar 26, 2025
Slide 1: Full Year 2024 Results & Beyond Boundaries Analyst Day
Full Year 2024 Results & Beyond Boundaries 26 March 2025 Analyst Day 1
Slide 2: Delivered on Outlook in Transition Year
Delivered on Outlook in Transition Year Outlook 2024 Results 2024 Positive growth in 2nd Half 2024 5.9% Full Year flat to 2023 in revenue 1.2% Full Year 3.2% on constant exchange 2
Slide 3: Accelerated growth in 2nd Half in Strategic Growth Areas
Accelerated growth in 2nd Half in Strategic Growth Areas 1H 2H FY Mainland China 1.7% 30.9% 16.6% (online) Southeast Asia 6.7% 4.7% 5.7% Gulf Cooperation 0.6% 7.0% 3.6% Council 3 At constant rate
Slide 4: Hong Kong – Our Home Market
Hong Kong – Our Home Market All stores No.1 Apparel profitable at Brand on Dec’24 4
Slide 5: Accelerated growth in 2nd Half in Brands
Accelerated growth in 2nd Half in Brands 1H 2H FY Men -4.1% 4.6% 0.1% Women -2.6% 11.5% 4.4% Junior -7.5% 4.1% -1.9% -10.9% -4.5% -7.7% 8.8% 57.9% 33.3% 5
Slide 6: Progress seen in Quick Win Initiatives launched in May
Progress seen in Quick Win Initiatives launched in May WIP WIP WIP Store eCommerce Go-To-Market Product Storytelling on Inventory Operations Acceleration SS’25 Allocation Product Management Improvement Innovation 6
Slide 7: Returned to Growth in 2024 Transition Year
Returned to Growth in 2024 Transition Year Strengths and Weaknesses 2nd Half growth in strategic growth Gross margin impact due to areas of Mainland China (online), clearance of aged inventory South East Asia, and GCC from previous years Top line driven by both online and Mainland China continue to
Slide 8: A Year of Transition
2024 A YEAR OF TRANSITION Better than expected performance Beyond Boundaries 5 Year Plan Launched 8
Slide 9: Overview
Overview • Group revenue was increased by 1.2% to HK$3,919 million (FY23: HK$3,873 million). On a constant exchange rate basis, revenue was up by 3.2% Group same-store sales +2.3% Achieve commitment of revenue YOY flat • Gross margin -1.4pp to 57.0% Change in channel mix with higher online con
Slide 10: Revenue by market
Revenue by market +1.2% to HK$3,919 million (FY23: HK$3,873 million) At constant exchange rates • Group revenue was up 3.2% • Greater China retail -0.1% (1H24: -5.1%) Mainland China strong rebound in online business • Southeast Asia and Australia +5.7% • Gulf Cooperation Council +3.6% • Benefit fr
Slide 11: Revenue by channel
Revenue by channel Offline -0.1% ● Mainland China -21.7% lack of brand investment Online +11.3% ● Mainland China +14.2% ● Non-Mainland China 19.9% of online revenue Wholesale -0.7% ● Mainland China -15.0% Large shipment of inventory at the end of 2023 March 26, 2025 Giordano 2024 Annual Results
Slide 12: Gross profit
Gross profit • Gross profit -1.3% YOY; gross margin -1.4pp to 57.0% (FY23: 58.4%) • Online business contributing more significant growth • Strategic clearance of aged inventories • Unfavourable currency impact 2023 Currency 2024 gross Product Selling translation gross (In HK$ million) profit costs p
Slide 13: Operating expense
Operating expense • Operating expense-to-revenue ratio +1.5pp • Mainly due to corporate resolution exercise and implementation of our 5‐year business strategy transformation program FY23: 47.2% FY24: 48.7% (exclude non-recurring: (exclude non-recurring: 47.2%) 47.6%) March 26, 2025 Giordano 2024 Ann
Slide 14: Changes in PATS
Changes in PATS Net margin -3.4pp to 5.5% (FY23: 8.9%) (In HK$ million) 2023 PATS 345 Gulf Cooperation Council 11 Southeast Asia and Australia (22) South Korea (24) Greater China (69) Wholesale to overseas franchisees/subsidiaries 15 Headquarter expenses, finance expense, income taxes and non-contro
Slide 15: Market update: Greater China
Market update: Greater China Mainland China • Total revenue FY24: -0.5% 2H24: +9.1% vs. 1H24: -9.9% • Online business surge FY24: +14.2% revenue growth 2H24: +29.8% vs 1H24 -2.2% • Offline business improvement 2H24: -16.7% vs 1H24 -25.9% Weakening brand perception and awareness Detache
Slide 16: Market update: Southeast Asia and Australia (“SEA”)
Market update: Southeast Asia and Australia (“SEA”) Stable Growth and Strong Future Potential SEA revenue >> FY24: +2.5% >> 2H24: +4.3% vs. 1H24: +0.7% Indonesia and Singapore • Solid growth • Effective local marketing initiatives for brand image enhancement • Focus on main brand development T
Slide 17: Market update: Gulf Cooperation Council (“GCC”)
Market update: Gulf Cooperation Council (“GCC”) • GCC FY24 revenue up 3.3%, 2H24: +6.7% vs. 1H24: +0.3% • Sustained growth despite geopolitical headwinds: The business continued to expand despite macroeconomic challenges. • GCC region fuels growth: Improved product availability and effective marketi
Slide 18: Inventories
Inventories • Group inventories +7.2% YOY On the back of early CNY • ITOC +2 days YOY, 110 days (FY23: 108 days) • Finished goods at suppliers increase due to stock-up for early Ramadan • System inventories +5.5% YOY Healthy At December 31 June 30 December 31 (In HK$ million) 2024 2024 2023 Inve
Slide 19: 2024 In Review
2024 In Review Successfully Set the Stage for Beyond Boundaries Implemented Quick Delivered Outlook Inventory in Healthy Levels Wins Organization in place with capability brought in for Design, Product, eCommerce and Retail Operations 5 Year Strategy in Place 19
Slide 20: Beyond Boundaries Strategy 2030
BEYOND BOUNDARIES STRATEGY 2030 20
Slide 21: Solid Progress on Strategic Choices
Solid Progress on Strategic Choices BrandPortfolio Greater China One Brand Mainland China reset Strengthen 2025 Product Offering Hong Kong as model city Invest in Brand Digital First ONE Giordano eCommerce acceleration in Operating Model – Global <> Local Mainland China People and Culture Strategy L
Slide 22: Beyond Boundaries: Key Milestones from 2025 to 2030
Beyond Boundaries: Key Milestones from 2025 to 2030 REVITALIZE & RESET RECALIBRATE RECONNECT 2025 2026-2027 2027+ Enhancing Fundamentals Revitalize the brand portfolio Regain our position in Greater Strengthening our Go-To-Market China (ML China + HK) Strategy Deliver great & quality produ
Slide 23: Our Focus Areas for 2025
Our Focus Areas for 2025 Year 1 of Beyond Boundaries - Reset Mainland China eCommerce Investment into Reset Acceleration Brand & Product Sourcing People & Culture 23
Slide 24: Making people feel good and look great
Making people feel good and look great 24
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Slide 26: Improved shopping consumer experience
Improved shopping consumer experience 26
Slide 27: Investment into brand communications
Investment into brand communications 27
Slide 28: Investing into Giordano Ladies
Investing into Giordano Ladies Accelerate our eCommerce strategy ~1% of total sales from Giordano Ladies comes from eCom due to lack of investment Better locations, Bigger store size Our store size is ¼ of our competitors More targeted marketing Limited marketing spent historically Our Products and
Slide 29: Outlook
2025 Outlook 29
Slide 30: 2025 Outlook
2025 Outlook 3-5% Positive Growth Full Year Profit to grow faster than top line 30
Slide 31: Beyond Boundaries is Our Growth & Investment Strategy
Beyond Boundaries is Our Growth & Investment Strategy 2030 OUR AMBITIONS FOR 2024 2024 PROFIT AFTER TAX NET SALES GROWTH Endeavour to achieve Strive to achieve revenue at a high single to low double-digit profit after tax margins compound annual growth rate trending towards (CAGR) historic levels 31
Slide 32: 2030 Vision, mission, corporate values
2030 Vision, mission, corporate values In Phase 1, we leveraged 3 sources of inputs to support our diagnosis… To be the best Asian apparel brand To make people "Feel Good" and " Look Great" Copyright © 2024 by Boston Consulting Group. All rights reserved. Updating expertise and Exceeding customer's
Slide 33: Thank You
GIORDANO THANK YOU
Giordano International — FY2024 Earnings Presentation on 6ix