Daphne closing all physical retail stores
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Hong Kong-listed women’s footwear label Daphne International is withdrawing its physical retail stores from Mainland China and Taiwan in the face of steep losses.
The brand’s most recent interim financial report shows an 85-per-cent drop in turnover to US$27.35 million and a loss of $18.2 million. The loss reflects the firm’s continuing strategy of closing Daphne and Shoebox-branded sales points, as well as the impact of the coronavirus pandemic.
The firm has had longstanding issues with its sales performance and had already shuttered 900 stores by March last year.
Daphne reported 2208 physical stores in June last year, which had dropped to 293 by the same time this year.
Questions & Answers
Q.What is the primary reason for Daphne International closing its physical stores?
What is the primary reason for Daphne International closing its physical stores?
The main reason is steep losses, as shown by an 85-per-cent drop in turnover and a significant financial loss. This is part of a continuing strategy to close sales points and reflects the impact of the coronavirus pandemic.
Q.How significantly has Daphne's physical store count decreased over the last year?
How significantly has Daphne's physical store count decreased over the last year?
Daphne's physical store count has decreased substantially. In June last year, it reported 2208 stores, which had dropped to just 293 by the same time this year, indicating a rapid reduction in its retail footprint.
Q.What financial performance did Daphne International report most recently?
What financial performance did Daphne International report most recently?
The firm's most recent interim financial report showed a substantial 85-per-cent drop in turnover, reaching US$27.35 million. It also reported a loss of $18.2 million during this period.
Q.Where specifically are Daphne International's physical retail stores being withdrawn from?
Where specifically are Daphne International's physical retail stores being withdrawn from?
Daphne International is withdrawing all of its physical retail stores from both Mainland China and Taiwan. This strategic move affects all the brand's brick-and-mortar locations in those regions.