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Daphne Mode Blocked Three Quarter Results Deteriorating Expectations

2013/10/22 8:31:00 33

Daphne Three Quarter Deterioration Of Performance

relying on the rapid expansion of stores, the sales cake has been growing rapidly. Under the abrupt change of the market environment of the female a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a >, the Daphne mode has encountered great resistance and has been in the predicament of the slow down of store expansion and the decline of same store sales. According to the latest three quarter operating data, the same store sales growth in the first three quarters of the company dropped by 12.2%, while the third quarter fell by 18.1%. 
 three quarter results fell out expectations 
 the sudden change in the overall environment of the industry and poor performance seem to be expected. In the first half of this year, Daphne's sales revenue increased by 1.7% to HK $5 billion 200 million, but its operating profit and net profit decreased by 35.6% and 35.7%, respectively, to HK $450 million and 310 million respectively. However, for the three quarter, Daphne's performance seems to have fallen out of the industry's expectations. 
 in the first half of 2013, the sales revenue of Daphne same store declined by only 9.2%, because the sharp decline of same store sales growth in the three quarter dragged down the same store sales decline to 12.2% in the first three quarters. In the wake of the deterioration of the three quarter, Daphne said that due to the extremely hot weather in July and August, the street shops were losing stream of people, fierce competition and low consumption desire. 
"P > however, the old rival BELLE, which has been catching up with the past, has achieved 1.3% growth in the same quarter of the three quarter, while the sales growth of sports a target=" _blank "href=" //www.sjfzxm.com/ "> dress less than /a has reached 4.5%. Xiong Xiaokun, a researcher at CIC light industry, seems to have a direct relationship with Daphne's internal management. "After the rapid expansion, a slight slack in the company's internal management, a single shop profitability, product control and other aspects of the work is not perfect." 
 "the market outlook for the next quarter is still uncertain." Daphne is cautious about the market performance in the second half of this year. 
 store expansion deceleration 
 through the expansion of stores, Daphne rapidly doubled its sales volume from 50 billion HK dollars to 10 billion camp in 2010 to 2012. However, under the pressure of current performance, Daphne's overall expansion this year has drastically contracted. 
 reporter found that the number of Daphne's total stores increased by 963 in 2011, but in 2012 it was still 716, but in 2011, the figure was only 173 in the first half of 2013. The situation of its core brand is not very optimistic. In the first three quarters of this year, its core brand increased directly to 286 stores, but there were only 23 in the third quarter. 
 with the contraction of new stores, Daphne's franchising is accelerating. Reporters learned from the data released by Daphne that in 2012, Daphne cut 113 stores and reduced 51 in the first half of this year. In the third quarter of this year, the number of franchised stores decreased by 40. As of the end of the three quarter of this year, the number of Daphne's core brands was 6564, of which 5713 were direct stores, and 1055 from the peak period to 851. 
 < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > industry analysts pointed out that the increase in direct shops will lead to increased fixed costs and bring some pressure to operating profits. Now, for Daphne, the focus is not how to expand rapidly, but to increase the profits of single stores. 
 on the one hand, slashing franchisee stores and slowing down expansion of Direct stores on the one hand, Daphne's profit pressure can be seen behind this change. "The rapid expansion has brought great pressure on its revenue growth, operating costs growth and management difficulty is increasing, and marginal profit growth has become extremely difficult." Xiong Xiaokun believes that the next Daphne's business strategy will focus on "maintaining stability". 
 the plan for improving performance and the pace of expansion next year, although Daphne did not respond to reporters, but in the above announcement, Daphne will speed up the rectification of poor performance stores.