GIORDANO INT'L(HK:00709) 智通财经网·2025-08-29 04:23Core Viewpoint - Giordano International (00709) reported a slight increase in revenue and profit for the first half of 2025, but faced challenges with declining gross margins due to changes in channel mix and rising costs [1] Financial Performance - Revenue for the first half of 2025 reached HKD 1.934 billion, representing a year-on-year growth of 1.63% [1] - Shareholders' profit attributable to the company was HKD 121 million, an increase of 0.83% year-on-year [1] - Basic earnings per share were HKD 0.075, with an interim dividend of HKD 0.075 per share [1] Gross Margin Analysis - The gross margin decreased by 3.3 percentage points to 55.6%, leading to a 3.9% decline in gross profit [1] - The decline in gross margin was partly due to a shift in channel mix, with online and wholesale businesses contributing more significantly than planned, but these channels generally have lower margins compared to offline channels [1] - Strategic clearance of outdated inventory further exacerbated the situation, along with rising product costs [1] - Excluding the impact of non-Giordano brands, gross margin and gross profit would have decreased by 2.9 percentage points and 1.1% respectively [1] Future Outlook - Management anticipates an improvement in gross margin in the second half of the year, with more stable inventory levels and enhanced procurement processes [1] - The company aims to maintain product quality while improving cost efficiency [1]