A net loss is expected by Daphne International Holdings, which runs the Daphne and Shoebox brands in Mainland China, for its fiscal year ended December 31.

However, the company says the operating loss has been narrowed from that of the previous 12 months.

Its unaudited figures show a high single-digit percentage decline in its core brands’ year-on-year same-store sales for the fourth quarter, mainly attributed to a lower average selling price.

Daphne says enhanced product design and its autumn portfolio helped decelerate the decline in the final quarter. There was also an improvement in sales efficiency.

Overall, same-store sales for the 12 months fell by 12.4 per cent year on year.

During the fourth quarter, the group continued to adjust its channel mix to align with its refreshed brand positioning and store consolidation, resulting in 328 points of sales being closed, including 317 directly managed stores and 11 franchised stores.

For the year, 1009 points of sale were closed, leaving the group with 3589 outlets.