"Volkswagen Shoe King" Daphne Continues To Lose Money

In the evening of August 23rd, the interim results were released: turnover fell by 22.3% to HK $3 billion 401 million, the company owner's share of losses was HK $164 million, and total sales point decreased by 466 to 5464.

In March of this year, Daphne announced its annual performance in 2015, when its owner accounted for a loss of HK $379 million, a sharp decline of over 300% compared with last year.

According to press statistics, this is Daphne's first loss in nearly 10 years, and it goes back to 2001.

By the end of August 24th, Daphne's share price was HK $1.04, when the world slipped 5.45%, and at the peak of 2012, its share price was more than HK $11.

Insiders pointed out that at present, including the industry leader

Included,

Like the whole shoe and clothing industry, it is experiencing adjustment period due to factors such as labor costs, rents rising, industry saturation and electricity supplier impact. Meanwhile, the closure of brand stores will continue.

"Volkswagen shoe king" continues to lose money

The biggest problem facing local brands who can hardly attract more customers is the continuous decline in their performance.

In the latest performance report released by Daphne, it pointed out that the decrease in group turnover was mainly due to a sharp reduction in sales points and a reduction in sales in the same store.

In the first half of 2016, the same store sales of core brands (Daphne and shoe cabinet) fell by 11.7%, according to previously released figures.

In addition, 450 core brand outlets were closed in the review period. As of the end of 6, Daphne had 5147 core brand outlets, compared with the same period last year, and the number of core brand sales decreased by 17.3% on a yearly basis.

In addition, its own and agent parts of high-grade brands also reduced by 16 stores.

In 2015, Daphne had cut 827 sales points.

For customs stores, independent critic Ma Gang, shoe and garment industry, told reporters that apart from the bad environment, a large number of store closes are the result of internal optimization.

In the interim report, Daphne pointed out that the frequent rainstorms and floods in the first half of this year further affected the already weak consumption intention and shop passenger flow, which made the popular market of women's shoes market more intense since the second quarter of 2016.

In addition, the inflationary pressure of operating costs has brought additional challenges to a large number of retailers.

It also said that the fashionable trend of fashion in recent years has also had a certain impact on the consumption of traditional women's shoes.

In fact, in 2013 and 2014, the profit attributable to Daphne's owners has declined sharply for two consecutive years.

In 2015, Daphne turned into a deficit.

For the first half of this year's losses, Daphne pointed out that the decline in sales and the increase in sales of over season products resulted in a significant decrease in gross margin.

At the same time, it emphasized that the group will continue to integrate the store network until the group returns to profitability.

In addition, another focus in the second half of this year will be on optimizing inventory.

Women's shoes industry will remain shuffled

The brand of Chinese women's shoes such as BELLE and Saturday is not very good.

In May, BELLE released its annual results for the year ended February 29, 2016, of which the sales of footwear business decreased by 8.5% compared with last year.

During the year, the number of footwear retail outlets in the mainland of China decreased by 366.

Saturday is also facing the decline in net profit and high inventory.

According to a notice previously disclosed, Saturday 1~6 2016 attributable to shareholders of listed companies net profit range of -30% to 0.

It points out that the growth of the retail industry is slowing down by the macroeconomic impact, and the department stores, which are the main channel of the company's products, face the pformation and new challenges, which are expected to decline slightly in the first half of the year.

The latest performance has not yet been released, but last year it also reduced net sales of 33 self operated retail outlets and 65 third party retail outlets.

Support for the impact of the theory of electricity providers view that women's shoes are closely related to the change of channel environment and consumer behavior habits.

As a new channel, electricity providers take advantage of low price strategy.

However, most of the view is that electricity providers are only a small part of the reason.

"There are many reasons for this. First, the new brand has become more and more contention for the market, leading to a decline in the share of these original brands.

In addition, the nature of brand launch and its location groups do not match, leading consumers to choose other brands.

Another is that they do not match the commodity structure of the terminal and the market demand structure.

Nine Shao Ligang, general manager of the Advisory Group, told reporters.

The brand of women's shoes is changing, including typical development of BELLE and Daphne, and other enterprises have tried cross-border pformation. The representative is Saturday.