11 double champion Daphne has closed shop doubled up to 805 year

reported in January 26, 2016 that the fourth quarter of Daphne International Holdings Ltd sales deteriorated further, Daphne and shoe two core brands of the same store sales decline from the three quarter of 19.7% to expand to 20.2%, thus greatly enhance the speed of group closed shop, and issued a profit warning.  

Daphne international brand core

annual same store sales fell 18.5% over the 2014 fiscal year, and the performance is getting worse, one to the fourth quarter of decline (15.9%, 17.7%, 19.7% and 20.2%) gradually expand. The group of the four quarter of sluggish performance due to China sustained economic slowdown and weak consumer sentiment, unusually warm winter temperatures, "double eleven" online promotion diluted the entity store traffic and provide a substantial discount to peers more competitive.

quarter of group net closed shop number more than the sum of the first three seasons, reached 405 (384 stores and 21 stores), the annual total group net closed shop 805 (692 stores and 113 stores), as of December 31, 2015 the total number of core brand stores reduced to 5597 (5056 stores and 541 stores).

Daphne points out that speeding up the reaction to benefit yet closed shop operating profit rate, and the average selling price, the number of units sales plunged down to gross margins under pressure, thus operating profit margins to decline further. In addition to the increase in the negative operating leverage, and inventory combing, streamlining staff and store integration related operating expenses increased, is expected to record significant losses throughout the year.

is the only good news is that e-commerce in the four quarter and full year sales growth in all of the first Alibaba in the "double eleven" in the Daphne brand continues to rank shoes category. However, the proportion of electricity supplier business in the overall sales of the group is not high, its growth can not offset the negative effects of dilution of the bulk flow of the store.

Daphne international

closed Tuesday at HK $1.04, since 2015 the stock has reported more than 60%.