China Dongxiang, which distributes the Kappa brand in Greater China and has been a publicly traded company since 2007, reported a net loss of 410 million yuan renminbi (€52.7m) for the six months ended Sep. 30. Excluding its investment segment, operating profit was RMB 75 million (€9.6m). Year-over-year revenues were flat at RMB 776 million (€99.7m) as the gross margin expanded 670 basis points to 69.1 percent.
Sales of the Kappa brand rose 8.0 percent to RMB 739 million (€94.9m), accounting for 88 percent of all group sales for the six months. Kappa apparel sales rose 9.0 percent to RMB 543 million (€69.7m), but footwear sales declined by 7.5 percent to RMB 147 million (€18.9m). Sales of accessories improved by 81.5 percent to RMB 49 million (€6.3m).
The group, which ended the period with 1,022 Kappa stores (excluding Kappa Kid’s locations), says it continues implementing omnichannel as its core strategic objective. Further, China Dongxiang reported notable improvements in same-store efficiency and the business performance of key stores during the period.
