China'S Low-End Women'S Shoes Are Seriously Affected By E-Commerce And Foreign Brands.

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Daphne's performance decline is still continuing.

Yesterday,

International Holdings Limited released its interim results. As of June 30, 2015, the group's turnover was HK $4 billion 374 million, down 13.9% compared to the same period last year, and its profit plunged 95.4% to HK $11 million and 181 stores closed.

Earnings data show that Daphne group's core brand business Daphne and shoe sales in the first half of the year fell 13.9% to HK $4 billion 34 million.

Although the overall inventory level dropped somewhat from 6 months ago, the turnover period increased to 238 days due to reduced sales.

Because of the high fixed cost structure of the group retail business and the inflationary pressure of major operating costs, the operating profit margin has been negatively affected, and the core brand business's operating profit margin has dropped to 1%, down 4.7 percentage points from the same period last year.

At the same time, the group maintained a prudent sales network strategy, and closed 181 stores in the first half of the year.

Daphne said that the decline in group performance was mainly due to the slowdown in macroeconomic growth and weak consumer spending intention.

The rapid growth of channels has made it more competitive with retailers.

Group management believes that the delay in spring and summer brings additional challenges. The market of the popular women's shoes market has been greatly discounted, leading to a competitive environment dominated by promotions and discounts.

In addition, retailers' profits are squeezed by rising operating costs.

Daphne's downturn is not alone.

In the first quarter, sales of core business footwear business decreased 7.8%, while the number of stores decreased by 167, equivalent to closing a store every two days.

Saturday's earnings report showed that in the first half of the year, the company's revenue was 845 million yuan, down 3.81% from the same period last year.

Once a leader in the women's shoes industry, they are no longer in sight.

In the industry view, in recent years, low-end women's shoes brand by the impact of the electricity supplier and foreign brands, the situation is very optimistic.