China Dongxiang, distributor of the Kappa brand in Greater China, reported an operating profit of 162-million-yuan renminbi (€21.0m) for the six months ended Sep. 30. Net profit attributed to owners of the company, publicly traded since 2007, was RMB137 million (€18.0m) versus a loss of RMB 410 million in the year-ago period.
H1 revenues declined by 3.5 percent to RMB749 million (€98.0m) from RMB776 million while gross margin slipped by 20 basis points to 68.9 percent. Kappa apparel sales fell by 4.2 percent to RMB520 million (€68.0m). Kappa footwear sales, meanwhile, declined by 32.0 percent year-over-year to RMB100 million (€13.0m). Accessories revenues grew by 74 percent to RMB85 million (€11.0m).
At period end, the group had 557 directly operated Kappa stores, which generated RMB452 million (€59.0m) in sales, which were essentially flat year over year. H1 sales in non-directly operated doors fell by 12 percent to RMB253 million (€33.0m).
