Daphne'S Revenue Plunged By 22.3% In The First Half Of The Year.

The company issued a mid day report on Tuesday that the company lost a net loss of HK $163 million 600 thousand in the first half of the year.

Daphne said the first half of the year was due to sales decline and excessive inventory.

The gross profit margin resulting from the increase in sales accounted for a setback, which made the group lose profits in the first half of the year.

Daphne said sales decline was mainly affected by a large number of stores and the same store sales fell sharply during the period.

Consumer demand is weak, and the two quarter mainland market is affected by bad weather factors such as rainstorm, flood, and so on.

In addition, Daphne said that because of the fact that Chinese consumers are traveling more now, their knowledge and experience increase, coupled with the urbanization process, the increasing penetration of smart phones and other innovative technologies, have led to a faster change in their consumer behavior than before.

Besides, the popularity of the movement also has a thin effect on the consumption of traditional women's shoes.

In the first half of June 30, 2016, Daphne's revenue plunged 22.3% to HK $3 billion 400 million 800 thousand, compared with HK $43.743 billion in the same period last year.

The drop in sales was mainly due to a reduction in sales point. During the period, the group closed 450 stores.

Because of the increase in the proportion of products sold in the past quarter, the gross profit margin dropped to 29% HK $18.842 billion, compared with HK $2 billion 654 million 600 thousand in the same period last year, and the gross profit margin dropped 530 basis points to 55.4% over the same period last year. Although the operating cost decreased by 18.3% a year, the Group recorded a HK $2.495 HK $100 billion in the first half of the year, compared with a HK $11 million 22 thousand operating profit in the same period last year, and the operating profit margin was -7.3% during the first half of the year.

The income of the two core brands of Daphne and shoe cabinet fell by 22.8% during the period from 4 billion 34 million 900 thousand Hong Kong dollars in the same period last year to HK $31 billion 136 million, with an average sales decline of 4.2%.

Sales of other brands such as love, STEP HIGHER, alsofs and ALDO were basically flat at HK $3.888 HK $100 billion, rising to 11%, compared with 9% in the same period last year. The rise in electricity supplier income has offset the decline in sales of high-end brand portfolios.

The negative impact of the growth of electricity providers is that the gross profit margin of other brands also plummeted 710 points to 56.9% during the business period. The segment recorded a 1 million 660 thousand operating profit.

During the first half of the year, there were 2000 to 16000 redundancies in the group.