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    Daphne: Withdraw From Physical Retail Completely And Lose HK $141 Million In The First Half Of The Year

    2020/8/27 17:23:00 498

    DaphnePhysical RetailLoss

    On the evening of August 25, Daphne The interim financial report for 2020 was released. The data showed that the turnover in the period decreased by 85% year-on-year to about HK $212 million. The profit attributable to shareholders increased by 63.77% year-on-year, but there was still a loss of HK $141 million.

    In addition, Daphne announced that it would continue to carry out the strategic transformation of asset light business model, focus on core brand business, and completely withdraw from the medium and high-end brands including Mainland China and Taiwan market Retail business entities , close all other Brand point of sale

    As for the performance, Daphne said in the announcement that this was mainly due to the sharp reduction of sales outlets from 2208 on June 30, 2019 to 293 on June 30, 2020, and the impact of the new crown pneumonia epidemic on store operation and consumer market.

    The announcement shows: in the first half of 2020, the group has closed 132 sales outlets, including 67 stores of two core brands of "Daphne" and "shoe cabinet", and 65 stores of other brands.

    At present, Daphne has 293 remaining stores, all of which are core brand stores, which is 19% less than that at December 31, 2019.

    In fact, since 2015, Daphne's performance has been declining. The data shows that from 2015 to 2019, Daphne lost HK $379 million, HK $819 million, HK $734 million, HK $994 million and HK $1.070 billion respectively.

    In 2019, the total number of Daphne stores will also shrink from 2820 to 425, including 360 core brands from 2648 in 2018, and other brands from 172 in 2018 to 65, which means that Daphne will close 2395 stores in 2019.

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