On August 15, Kappa's parent company China Trends released its six-month interim results as of June 30, 2018. China's dynamic operating income was 772 million yuan, up 14.4% year-on-year; gross profit was 451 million yuan, up 9.2% year-on-year. Gross profit margin was 58.4%, down 2.8 percentage points year-on-year; operating profit fell 12%; profit attributable to shareholders was 481 million yuan, down 10.3% year-on-year.
China Trends said in the announcement that in the first half of 2018, China Trends further cleared the Kappa brand DNA and brand Shoes Coupons assets through more than 4,000 sample studies. Since January this year, Kappa has promoted the brand through the Paris Fashion Week, and cooperated with well-known designers Cang Shiyishu and other well-known brands. In combination with online and offline marketing methods, China Trends further strengthened the “clearing the brand and focusing on the terminal”. , regaining growth, the development plan.
This year is the 16th year for Kappa to enter the Chinese market. In the China branch, as of the end of June 2018, China's Kappa brand included 1,439 stores including children's wear, a net decrease of 48 from the end of last year. The decrease in stores was mainly inefficient stores; the futures orders fell 20% year-on-year. In the case of -25%, China Trends reached a phased goal of same-store sales and retail stream growth, with store efficiency and running water rising in low-to-medium units.
During the period, China’s “China Football Team” activities continued to heat up, and football youth training, “Kappa Kids Cup National Tour” and other activities were fierce, further strengthening Kappa’s position in the children’s wear market. For the six months ended June 30, 2018, the income of its children's wear business was 50 million yuan, accounting for 7.7% of China's revenue.
In addition, China's movements saw a significant increase in revenue in the Japanese branch, and financial losses were significantly narrower than in the same period last year, and the financial situation continued to improve. China Dynamics Management stated that while ensuring the stability of its local business in Japan, it is also actively promoting the business expansion of the PHENIX brand in China and Dacoz Coupons overseas sales based on the European market.
After more than half a year of adjustment and reform, in the second half of the year, China Dynamics Management stated that it will continue to adhere to brand development and seek appropriate opportunities to better integrate capital and sports.
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