Menswear group Cabbeen Fashion is tightening its belt.
In its interim results for the six months ended June 30, the group reports a profit drop of 31.5 per cent to RMB102.2 million (US$15.4 million).
Revenue eased by 4.5 per cent to RMB536.2 million, while gross profit inched up by 2.4 per cent to RMB269.3 million. But the gross profit margin increased to 50.2 per cent.
Cabbeen had 1012 retail outlets at the end of the period, 422 (about 41.7 per cent) being under a consignment model.
While total retail revenue edged down 5.3 per cent, there was a more than 73 per cent leap in the group’s eCommerce revenue to RMB97.1 million.
As well as its own online stores and official website, Cabbeen has a presence on such eCommerce platforms as JD.com and T-mall.
“The weakened macroeconomic environment and consumer sentiment in Mainland China is expected to continue in the second half of this year,” says chairman Ziming Yang. “However, we believe there is still tremendous growth opportunity in the long run as consumer spending in China will continue to be fueled by the emerging middle class.”
He says the company will take a more cautious approach to retail network expansion, reviewing low-productivity stores and opening fewer new outlets. On the other hand, Cabbeen will invest more in developing its mobile ordering platform on social media, and further integrate its online and offline distribution channels.
Cabbeen is principally engaged in the design of apparel, footwear and accessories, brand management and sales of fashion casual apparel. The group’s fashion menswear brands are Cabbeen Lifestyle, Cabbeen Urban, Cabbeen Chic and 2AM.