La Chapelle core brands struggle

Multi-brand clothing retailer La Chapelle has struggled in the first nine months of this year, reporting a decline in sales of 0.5 per cent to RMB 6.201 billion, (US$889.94 million).

Revenue from womenswear brands Puella and La Chapelle fell by 13.47 per cent and 7.92 per cent, respectively, mainly due to adjustment of concessionaire counters and what the company described as “the optimisation and upgrades of products”.

However other brands in the stable, especially in menswear, mitigated those declines. Womenswear label Candies’ grew sales by 21.96 per cent, menswear brands Jack Walk, Pote and Marc Ecko collectively rose 17.97 per cent; and kidswear brand, 8eM rose by 96.43 per cent.

Net profit for the nine months was RMB 239 million (US$34.3 million), a decrease of 29.58 per cent year on year.

The Hong Kong-listed company says it is addressing declining sales and profits with a series of new measures, including focusing on increasing the sales-per-unit area, profit margin by product and average daily sales per salesperson.

The company said it plans to improve product lifestyle and design flow to better meet consumer expectations, optimising channel networks, including working with landlords to secure more effective selling space, improving management and customer service quality in its stores and introducing stricter controls on budgets.

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