China Dongxiang, which has been a publicly traded company for 15 years, lowered its net loss to 386 million yuan renminbi (€52.5m) from a loss of RMB 748 million for the six months ended Sept. 30. The six-month operating loss was RMB 392 million (€53.4m). Revenues dipped 8.9 percent to RMB 776 million (€107.0m) from RMB 853 million as the gross margin slipped to 62.4 percent from 64.8 percent on increased discounting and inventory clearance.
Sales of the Kappa brand, which has been distributed in the Chinese market for two decades, declined 8.4 percent to RMB 684 million (€93.1m) for the six months. Kappa apparel sales slipped 5.3 percent to RMB 498 million (€67.8m), footwear sales declined 19.3 percent to RMB 159 million (€21.6m), and accessory sales rose 12.5 percent to RMB 27 million (€3.7m). China Dongxiang’s kids’ apparel segment suffered a 32 percent sales decline to RMB47 million (€6.4m). International revenues increased 25 percent to RMB 45 million (€6.1m). The group ended the period with 1,099 Kappa stores, excluding the Kid’s banner.
