Soft consumer demand in Mainland China accounted for the dip in sales of Hong-Kong listed Daphne International Holdings Limited’s third quarter 2013 revenue.
The company, which is engaged in the manufacturing, distribution and retailing of apparels, footwear and accessories, witnessed an 18.1 per cent decline in same store sales in the third quarter ended 30 September 2013 from the same period a year ago.
Warm weather in the months of July and August led to weaker footfall at street stores while high competition also weighed on sales performance of the company. At the same time, consumer sentiment in China has turned sluggish amid slowing economic growth and high inflation, contributing to weak demand for clothing and fashion items.
The story for the first nine months of this year was no different as Daphne International Holdings witnessed a 12.2 per cent dip in like-for-like sales from the same period last year.
The company saw a net addition of 195 retail outlets in the first three quarters of this year including addition of 286 directly managed stores and reduction of 91 franchised stores.
As at 30 September 2013, the total number of points-of-sale of the company’s core brands which include the “Daphne” brand stood at 6,564.
The company has expressed caution over the near-term outlook amid challenging market conditions but it is stepping up measures to improve sales productivity, internal efficiency and cost control to bolster profitability.
The company is also aiming to step up marketing efforts and bolster brand image to help tackle increasingly high competition and boost sales growth.