Retailing, Franchising, and Consumerism Business Intelligence in China

Daphne To Withdraw Physical Retail Market

Women's shoes brand Daphne recently published its interim financial report for 2020, stating that its turnover decreased by 85% year-on-year to HKD212 million during the reporting period; meanwhile, its net profit increased by 63.77% year-on-year, but it still suffered losses of HKD141 million.

Daphne also announced that the company would continue to implement its light asset business model strategic transformation. The company will focus on core brand business and will completely withdraw from the Chinese mainland and Taiwanese medium and high end brand physical retail market and close all sales points of other brands.

Commenting on its performance, Daphne said that it was because the company reduced its sales points from 2,208 by June 30, 2019 to 293 by June 30, 2020 and the impact of COVID-19 on store operation and consumer market.

According to the report, during the first half of 2020, the group closed 132 sales points, including 67 Daphne and Shoebox branded stores and 65 stores of other brands. At present, Daphne has 293 remaining stores and all of them are core brand stores.

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