Daphne International expects loss to balloon

Footwear products group Daphne International Holdings expects its net loss to balloon by more than half for the year ended December 31.

Five main factors are listed for the projected loss by Daphne, which makes, distributes and retails its products and accessories…

• A significant decrease in sales.
• Negative same-store sales growth.
• Lower gross profit margin resulting from aggressive clearance efforts and a higher
  weighting of aged products in the overall sales mix.
• Operational charges related to inventory and store rationalisation.

However, the group says its net cash position has improved and the inventory level lowered as a result of the liquidation of aged inventory.

Also, the group’s eCommerce activities continued to achieve sales growth.
Daphne says its announcement is based on a preliminary assessment, with its annual results expected to be published in late March.