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    Daphne 2009 Growth, Foreign Sports Brands Are Closed

    2010/4/13 10:04:00 32

    Daphne Nike

      

    The Daphne International Holdings Ltd released its annual performance report for 2009 in the Hongkong stock exchange. The company's revenue in 2009 was HK $5 billion 832 million, an increase of 10% over the same period last year. Net profit fell 20% to HK $394 million, and the basic earnings per share decreased by 20% to 24.05 Hong Kong cents.

    The net profit decrease was mainly due to the fair value loss of warrants of HK $203 million 500 thousand.


    Data show that Daphne 2009

    Sale

    The cost is HK $2 billion 625 million, the gross profit margin is 55%, which is 2.3 percentage points higher than that of 52.7% in 2008.


    Daphne is the main source of profit


    The report shows that Daphne is still the main source of profit for the group.

    During the period, Daphne group added 514 sales outlets and its strongholds throughout the country.

    As of December 31, 2009, Daphne operates 1904 stores, 716 counters and 743 retail outlets.


    Close all Nike brand sales outlets.


    The report also showed that Daphne decided to gradually withdraw from the sportswear market. By the end of December 31, 2009, it had closed all Nike brand sales outlets and reduced the sales point of Adidas to 41.


    Due to the uncertainty of the market in 2009, Daphne has exclusive distribution rights in the mainland of China, including the high-end brand "Arezzo" and the international brand "Sofft" and its affiliated brand "Born".

    Daphne said it is reviewing and reforming the business strategy of medium and high class footwear.

    By the end of 2009, Daphne had operated 4 "Arezzo" and 4 "Sofft" sales outlets.


    Plans to add 500 Daphne sales outlets in 2010


    The report shows that Daphne group plans to add a total of 500 Daphne sales outlets in 2010 (including 250 Direct stores / counters and 250 franchised points) and 250 "shoe cabinet" sales outlets.


    In addition, Daphne Purchased Equity Capital of Full Pearl International Limited (Full Pearl) 60% in January 2010.

    Full Pearl is a top quality footwear retailer in China's first and second tier cities, as well as in Hongkong and Taiwan.

    At present, Full Pearl has about 200 outlets selling its own brands, "love" and "love charm", as well as other agency brands, including the famous Canadian brand "ALDO" and the American fashion brand "Jessica Simpson".

    Daphne group hopes to use this acquisition to enter the domestic high-end market sales network.


    The report also shows that Daphne group has appointed Ms. Ma Xuezheng, managing director of TPG, as the non-executive director of the company. Based on TPG's professional advice, the company is committed to strengthening the supply chain system and improving short to medium term operational benefits.



     


    Source: NetEase Finance

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