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    Traditional Women'S Shoes Industry Begins To Shuffle Daphne'S First Loss

    2016/4/2 11:00:00 22

    DaphneWomen'S ShoesMarket Quotation

    Although Daphne is vigorously developing the business of electronic commerce, this can not offset the negative effects brought about by its dilutive passenger flow.

    On the evening of March 29th, Daphne announced its year-end results as at the end of last year.

    Turnover

    With a decrease of HK $19.1% to HK $8 billion 379 million, the loss of the company's owners should be HK $379 million, a sharp decline of over 300% compared with last year.

    This is Daphne's first loss in nearly 10 years, and it goes back to 2001.

    Like Daphne, several major women's shoe companies including BELLE and Saturday (13.90, 0.24, 1.76%) are experiencing growth bottlenecks, shrinking stores, and declining sales in the same store.

    Industry sources told reporters that due to the current physical store rents, labor costs rise, coupled with the footwear market saturation, weak demand, and so on, footwear brand entity shop or will face a shuffle.

    In January of this year,

    Daphne

    An annual profit warning was issued earlier: "in the fourth quarter of 2015, the same store sales of group core brand businesses fell by 20.2%.

    Therefore, the growth rate of core brand sales in the same year in 2015 is -18.5%. "

    And sales decline together with net profit.

    In its annual performance report released in the evening of March 29th, Daphne said that the group's performance worse than expected was affected by the following factors: adverse market conditions, erratic weather including delayed summer and unusually warm winter, operating costs rising with inflation and increased negative leverage.

    In addition to Daphne, China

    Women's Shoes

    In the big market pattern, the situation on Saturday and BELLE was not very good either.

    The 2015 earnings Bulletin released at the end of last Saturday showed that its operating income was 1 billion 619 million yuan, down 7.94% compared to the same period last year, and net profit was 24 million 550 thousand yuan, down 31.72% compared with the same period last year.

    In recent years, BELLE has also fallen into a predicament of declining performance.

    According to its earnings warning notice issued on the evening of March 29th, due to the continued weakening of footwear business and the increase in costs, the profit attributable to the company's equity holders in the year ended February 29, 2016 (2015/16) will be reduced by about 35% to 45% over the same period last year.

    It also announced its annual performance in March 15th.

    Despite the growth in revenues and profits, net sales of 33 self operated retail outlets and 65 third party retailers last year were reduced.

    In the second half of last year, due to further deterioration of market conditions, many measures have been taken, including closing down shop, streamlining personnel, moving factories and tightening up inventory levels.

    In stores, Daphne cut 827 sales points last year.

    For the shop, the independent critic of the shoe and clothing industry, Ma Gang, has previously said that in addition to the bad environment, a large number of store closes are also the result of internal optimization.

    Reporters read Daphne's past ten years' performance report, noting that it was the first loss since its turnaround in 2002.

    However, in 2013 and 2014, the owner of the company has accounted for a sharp decline in two consecutive years.


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