Wangfujing Reports Net Profit Decline

Chinese department store retailer Wangfujing reported its financial situation for the first quarter of 2016, and the news was not great.

The company stated that by the end of March 2016, its operating revenue reached CNY4.733 billion, a year-on-year decrease of 5.2%; and its net profit attributable to shareholders was CNY187.254 million, a year-on-year decrease of 17.02%.

According to the report, Wangfujing's total product retail value was CNY4.52 billion, a year-on-year decrease of 6.1%; and its gross margin was 18.11%, which was 0.43% lower than the same period of last year.

By region, Wangfujing saw certain revenue growth in Central China and the northwestern region; meanwhile, its performance declined in North China, South China, southwestern region, and East China. Of which, East China suffered the largest decrease of over 18.3% compared with the same period of last year.

Wangfujing revealed in the report that the group invested CNY220 million in acquiring a 51% stake in Haerbin Xidingtai Commercial Investment.

In addition, Wangfujing formally launched its cross-border e-commerce business via its WeChat store. Taking cosmetics products as its entry point, the company provides directly mailed cosmetics from France, Australia, Japan, and South Korea. This online store of Wangfujing introduced light luxury brands such as Estee Lauder, Fular, and Armani.