• FY net profit down 20%
  • Gross profit margin increases to 58.7%
  • Sales edge up 3%

Apparel retailer Giordano International said it had a "challenging" 2013 as it booked a decline in earnings for the full year.

Net profit in the 12 months to the end of December declined by 20% to HK$730m (US$94.1m) from HK$888m a year earlier.

Gross profit margin, however, increased 58.7% in 2012 to 60.7%, while sales edged up 3% to HK$5.85bn.

Declining sales in Mainland China, Singapore, Taiwan and Australia, offset by growth in other markets, particularly Thailand and Indonesia, and the acquisition of a controlling interest last year in Giordano Middle East. Global brand sales were down 2% for the year.

"2013 has been a challenging year for Giordano, with trading conditions across our global business reflecting weakening macro-economic forces and intense competition," said chief executive Dr. Peter Lau. "Growth in consumer demand has declined in Mainland China, Taiwan and Singapore. In Mainland China, we continue to see excess inventory in the apparel market, intense discounting by competitors and new international brand expanding their presence."