Daphne'S Shortage Of Workers In Shoe Enterprises Has Plummeted.

According to relevant reports in Hongkong media, Daphne International (market, information, commentary) (2010) retrogressed in the first half of the year, but excluding the impact of the fair value loss of warrants, core earnings continued to grow.

At the beginning of this year, the Group acquired a nearly 60% stake in the high-end shoe retailer "Fu Zhen". Although it has not yet formulated short-term specific business development strategies, it can promote its expansion in the middle and high-end women's shoes market and complement the current low-end women's shoes business, which is believed to help raise the gross margin level.

Middle and high-end brands: the Group acquired 60% stake in the first half of the year. The latter operates 193 self brand and agent brand sales outlets, including the Canadian brand "ALDO" and the US brand "Jessica Simpson" and so on, four high-end brands, and its sales network covers the second tier cities in the mainland, Taiwan and Hongkong.

Although Fu Zhen is still at a loss in the first half of this year, the group hopes to achieve its annual profit target.

It is believed that the acquisition of rich treasure will help expand the high-end footwear market and complement the existing low and middle end businesses.

Same store sales: in the first half of the year, the sales growth of "Daphne" brand was only 2%, mainly due to the increase in operating costs such as rents and the shortage of workers affecting the supply.

The problem of shortage of workers was resolved in 7 and August and returned to normal supply. The group maintained the goal of "Daphne" brand growth in the second half of the year with a growth rate of over 5%.

As for the "shoe cabinet" brand, most products are supplied by the internal workshops, so they are not affected by the shortage of workers.

In the first half of this year, the same store sales grew 13.7%, and maintained a 10% to 15% growth target for the whole year.

The increase in the number of stores is affected by the shortage of workers. In the first half of this year, the growth rate of Daphne brand stores slowed down, only 183 from 3546 at the end of last year.

The Group expects growth in the second half of this year to increase significantly, with the goal of adding 500 sales points throughout the year.

As for the "shoe cabinet" brand, there were 111 new sales outlets in the first half of this year, with a total number of outlets reaching 924, with an annual target of 250.

In addition, the group should withdraw from the sports brand distribution business and close all the stores before the end of June.