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    Daphne'S Core Brand Sales In The Three Quarter Dropped By 13%.

    2016/10/21 11:18:00 27

    DaphneBrandBELLE

      

    Daphne

    In the three quarter, the core brand sales in the same store dropped by 13%.

    Although Daphne's same store sales fell briefly to 6.2% in the first quarter, however, the 15.9% quarter decline in the two quarter proved that the group did not find a way to recover from the sluggish economy and retail industry. As at the end of September, the group's core competitiveness in the first nine months of the year

    brand

    Same store sales fell 12.1%.

    In addition, the speed of Daphne closing was accelerated month by month. There were 307 stores (including 284 direct and 23 franchised stores) in the three quarter, while 176 and 274 in the one or two quarter. The total number of stores in the first three quarters reached 757.

    Daphne said sales decline in the same store was mainly driven by a drop in sales, and the average selling price of core brands also dropped slightly.

    Despite repeated consumer Daphne,

    BELLE

    The decline of the performance of local shoe giants is attributed to the "fashion" problem. However, the actual situation is not related to it.

    As the Stella International Holdings Ltd. nine Holdings Limited, the footwear giant, the demand for fashion and casual shoes has slowed sharply, while the demand for sports shoes has been relatively strong.

    Belle International Holdings Ltd's strategy of closing traditional shoes and reversing the expansion of brand agency stores also proves the change of consumption trend.

    In addition, China's economic downturn, consumer spending in fashion categories greatly reduced, real estate investment, household goods, tourism, catering, entertainment and other consumer spending increased proportion, so that the consumption of fashion categories downturn.

    Data from China's National Bureau of statistics to support the above trend change, in addition to petroleum products, gold and silver jewelry, clothing, shoes and hats, cosmetics were the worst performance in the first nine months of this year. Consumption of gold and silver jewelry dropped by 1.3%, while clothing shoes and hats and cosmetics increased by 7.2% and 8.4% respectively, but they were far lower than the 10.4% increase in total retail sales of consumer goods.

    The GDP data released in the first three quarters of this year's national statistics also show that the growth rate of wholesale and retail industry in the first three quarters of this year is only 6.4% to 51191 billion yuan, which is lower than the overall growth rate of GDP 6.7%.

    The gross profit margin caused by the drop in sales and excessive inventory and the increase in the proportion of products sold in the past quarter were frustrated. In the first half of, the group lost a net loss of HK $163 million 600 thousand.

    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 reduced sales points.

    Because of the increase in the proportion of products sold in the past quarter, the gross profit margin dropped to HK $1 billion 884 million 200 thousand, compared with HK $26.546 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 $249 million 500 thousand operating loss in the first half of the year, compared with 1102.2 HK $HK $29% in the same period last year. The operating profit margin was -7.3% during the first half of the year, 0.3% at the same period last year, and a drop of 760 basis points.

    The two core brands of Daphne and shoe cabinet fell by 22.8% in the first half of the year, down from HK $4 billion 34 million 900 thousand to HK $3 billion 113 million 600 thousand in the same period last year, and the average selling price dropped by 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.

    Daphne said in its China Daily 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.

    As of September 30, 2016, Daphne's core brand business ran 4840 outlets, representing a 6002 net decrease of 1162 over the same period last year.

    Daphne's stock price has plummeted nearly 20% so far this year.

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