Giordano International Limited (Stock code: 709) May 22, 2008 (Thursday) 2008 First Quarter Results

Giordano International Limited (Stock code: 709)Giordano International Limited (Stock code: 709)

May 22, 2008 (Thursday)May 22, 2008 (Thursday)

2008 First Quarter Results2008 First Quarter Results

22 May 2008 Giordano 2008 First Quarter Results 2

Group Operations HighlightsGroup Operations HighlightsThree Months Ended March 31, 2008

Group turnover 15.1%

Retail & Distribution turnover 16.4%

Comparable store sales 5.3%

Mainland China retail sales 40.8%

Mainland China gross profit 61.3%

Group gross profit 17.2%

Group gross margin 46.9%

Net cash & bank balances (HKD millions) 561

Inventory turnover on sales (days) 27


Turnover

YOY Change

3 months ended 3 months ended Mar 31, 2008Mar 31, 2008

3 months ended Mar 31, 2007

12 months ended Dec 31, 2007

Garment Trading &

Manufacturing Turnover 1 3.53.5%% 34.9% 50.1%

Retail & Distribution Turnover 16.4%16.4% 13.4% 10.0%

Group Turnover 15.1%15.1% 15.3% 13.2%

Group Gross Profit 17.2%17.2% 10.6% 8.2%

1 Sales to external parties, net of intra-group sales

Divisional HighlightsDivisional Highlights

Group turnover increased by 8.3% YOY in Apr-08.


Retail & Distribution Turnover by BrandRetail & Distribution Turnover by BrandThree Months Ended March 31, 2008

Giordano & Giordano Junior, 85% (84%)1

BSX, 5% (7%)1

1 YOY figures in brackets.

Giordano Concepts, 5% (3%)1

Giordano Ladies, 5% (6%)1


Turnover

YOY Change




Giordano & Giordano Junior 17.0%17.0% 10.7% 5.7%

Giordano Ladies 15.7%15.7% 24.8% 17.8%

Giordano Concepts 53.1%53.1% N/A N/A

BSX 11.4%11.4% 11.1% 9.9%

Retail & Distribution Total 16.4%16.4% 13.4% 10.0%

Retail & Distribution Division Operations HighlightsRetail & Distribution Division Operations Highlights

1Q08 Retail & Distribution gross margin widened to 49.4% (1Q07: 48.0%).

Apr-08 Retail & Distribution sales and increased by 10.0%.


Comparable Store Sales 1

YOY Change




Giordano & Giordano Junior 5.2%5.2% 6.5% 2.0%

Giordano Ladies 6.5%6.5% 17.5% 9.1%

Giordano Concepts 1.1%1.1% N/A N/A

BSX 11.4%11.4% 8.7% 2.3%

Retail & Distribution Total 5.3%5.3% 5.8% 2.4%


1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration


YOY Change




Turnover 17.0%17.0% 10.7% 5.7%

Comparable Store Sales 5.2%5.2% 6.5% 2.0%

Change in Number of Outlets 77 27 137

Accounted for 85% of Retail & Distribution turnover for the three months ended Mar-08.

Total 1,730 outlets as of end Mar-08.

&


YOY Change




Turnover 15.7%15.7% 24.8% 17.8%

Comparable Store Sales 6.5%6.5% 17.5% 9.1%

Change in Number of Outlets 1 8


Total 39 stores as of end Mar-08.


YOY Change




Turnover 53.1%53.1% N/A N/A

Comparable Store Sales 1.1%1.1% N/A N/A



Total 15 stores as of end Mar-08.


YOY Change




Turnover 11.4%11.4% 11.1% 9.9%

Comparable Store Sales 11.411.4%% 8.7% 2.3%



Closed 9 stores in 1Q08 to as part of on-going store network restructuring.


Retail & Distribution Turnover by MarketThree Months Ended March 31, 2008

Mainland China, 36% (30%)1

Hong Kong, 19% (21%)1Taiwan, 15% (15%)1

Singapore, 8% (10%)1

Australia, 4% (5%)1

Indonesia, 4% (4%)1

Malaysia, 3% (3%)1

Thailand, 2% (2%)1

Others, 9% (10%)1

1 YOY figures in brackets


Turnover

YOY Change




Mainland China 40.8%40.8% 29.4% 23.8%

Hong Kong 4.4%4.4% 4.0% 2.2%

Taiwan 11.2%11.2% 1.6% 0.6%

Singapore 1.1%1.1% 1.1% 3.2%

Retail & Distribution Total 1 16.4%16.4% 13.4% 10.0%

South Korea 1 12.0%12.0% 5.0% 3.2%

Middle East 1 27.0%27.0% 13.3% 29.5%

1 South Korea and Middle East sales are not consolidated into Group sales. On March 31, 2008, the Group held 48.8% in Giordano South Korea and 20.0% in Giordano Middle East.



Comparable Store Sales 1

YOY Change




Mainland China 19.0%19.0% 22.1% 15.2%

Hong Kong 6.6%6.6% 8.9% 8.1%

Taiwan 5.8%5.8% 0.4% 4.2%

Singapore 8.0%8.0% 10.2% 10.9%

Retail & Distribution Total 2 5.3%5.3% 5.8% 2.4%

South Korea 2 4.7%4.7% 11.0% 8.6%

Middle East 2 21.0%21.0% 1.4% 10.9%

1 Inclusive of outlets operating for the full 3, 6 and 9 months in the periods under consideration2 South Korea and Middle East sales are not consolidated into Group sales. On March 31, 2008, the Group held 48.8% in Giordano South Korea and 20.0% in Giordano Middle East.



YOY Change




Turnover 40.8%40.8% 29.4% 23.8%

Comp Store Sales 19.0%19.0% 22.1% 15.2%


MAINLAND CHINA

Total 827 outlets as of end Mar-08.

About 40 additional stores planned for 2Q08, including a number of flagship stores

Apr-08 sales up 22.3% YOY.



YOY Change




Turnover 4.4%4.4% 4.0% 2.2%

Comp Store Sales 6.6%6.6% 8.9% 8.1%


HONG KONG



YOY Change




Turnover 11.2%11.2% 1.6% 0.6%

Comp Store Sales 5.8%5.8% 0.4% 4.2%


TAIWAN



YOY Change




Turnover 1.1%1.1% 1.1% 3.2%

Comp Store Sales 8.0%8.0% 10.2% 10.9%

Change in Number of Outlets 22 1

SINGAPORE



YOY Change




Turnover 12.0%12.0% 5.0% 3.2%

Comp Store Sales 4.7%4.7% 11.0% 8.6%


SOUTH KOREA



YOY Change




Turnover 27.0%27.0% 13.3% 29.5%

Comp Store Sales 21.0%21.0% 1.4% 10.9%


MIDDLE EAST


No. of outlets

As at Mar 31, 2008As at

Dec 31, 2007

ChangeGiordano & Junior

Giordano Ladies

Giordano Concepts BSX Others TotalTotal

Mainland China 783 14 4 26 - 827827 820 7

Hong Kong 46 10 4 28 - 8888 92 4

Taiwan 151 10 3 36 - 200200 210 10

Singapore 49 2 2 2 - 5555 53 2

Australia 58 - - - - 5858 61 3

Malaysia 61 1 1 - - 6363 63

Indonesia 82 2 1 6 3 9494 92 2

Thailand 79 - - - - 7979 77 2

South Korea 172 - - 3 - 175175 173 2

Middle East & India 150 - - - - 150150 147 3

Philippines 41 - - 3 - 4444 44

Japan 13 - - - - 1313 14 1

Others 45 - - 4 - 4949 49

Total 1,730 39 15 108 3 1,8951,895 1,895

GLOBAL RETAIL NETWORK

Documents

Giordano International Limited (Stock code: 709) May 22, 2008 (Thursday) 2008 First Quarter Results