Both revenue and net profit for Chinese menswear designer brand Cabbeen Fashion fell for its half-year to the end of June.
In the face of China’s economic slowdown plus fierce competition, the company initiated restructuring and cost-saving measures during the period, also streamlining its retail network with a greater focus on shopping malls. It closed 59 underperforming shops to end the half-year with 840 outlets.
Its unaudited consolidated results show the group achieving 24.3 per cent less revenue at RMB406 million (US$60 million). Operating profit fell 3.7 per cent to RMB138.1 million.
Gross profit margin increased to 53.5 per cent from 50.2 per cent.
Total retail revenue generated by stores declined by 11.8 per cent, compared to 5.3 per cent for the same period last year, mainly because of the shop closures. This also resulted in same-store sales growth declined by 4.9 per cent, compared to 6.9 per cent for the same period last year.
However, retail sales revenue from online shops grew by more than 32 per cent to RMB128.2 million. Its online stores include JD.com, Tmall, Wechat and the official website.
With consumer preferences becoming more sophisticated, the company says it invested in its in-house design and R&D capabilities. It tightened the team to 72 from 133, including 21 (down from 28) designers from Mainland China, Hong Kong, other Asian countries and Europe. The company also works with design institutes and contract designers around the world.
