Daphne Is Still Unable To Escape The Fate Of Continuous Closes.

Sluggish performance

International Holdings Limited (Daphne) is still unable to escape the fate of continuous closure.

Yesterday, Daphne issued a profit warning report for the first half of 2016. The report showed that Daphne continued to shut down in the first half of the year, and the same store sales growth rate, which reflected the mature store sales, also continued to decline.

Daphne announced that as of June 30, 2016, the company's sales in the first half of 2016 fell 11.7%, and the number of sales points decreased by 450, including 400 direct outlets and 50 franchisees.

In the two quarter of 2016, the same store sales fell 15.9%, and the number of sales points decreased by 274, including the reduction of 261 Direct stores and 13 franchisees.

Insiders said that the same store sales were a reflection of the sales growth of the mature shops, and the decline of this indicator will affect the overall profitability of the retail stores in the future.

For the current situation, Daphne said that Daphne expects to lose money in the 6 months ending June 30, 2016.

The main reason for the loss is that Daphne is mainly due to the following factors: sales decline, which is affected by the negative growth of large net closing stores and same store sales.

During the review period, consumer demand was weak, and frequent rainstorms and floods occurred in the mainland in the two quarter. This adverse weather has greatly affected the flow of shops, resulting in over season.

The proportion of sales increased, resulting in a significant decline in gross margin.

At the same time, Daphne also said it would strive to implement improvements, including the integration of its store network and inventory.

The business will continue to invest and strictly control expenditure so as to improve the annual performance.