Daphne International Holdings Limited reported unaudited revenue results for the second quarter of 2013. For the second quarter of 2013, the same store sales of the group's core brands business recorded a year-on-year decline of 13.7%. This is compared against 13.5% growth for the same period last year. The sales performance in the second quarter of 2013 was mainly affected by: weak consumer sentiment as economic growth decelerates, poor weather conditions and unusually cold spring season and Avian flu outbreak in Eastern China

Based on a preliminary review of the unaudited consolidated management accounts and the information currently available, the Board announced that, profit attributable to owners of the company for the six months ended 30 June 2013 is expected to have a meaningful decline as compared to that of the same period last year and resulted in a mid-single digit net margin. The decline in profit is mainly due to: Deceleration in sales growth, lower gross profit margin and negative operating leverage resulted from the high fixed-cost structure of retail operation.

While the performance of the first half of 2013 is below expectation, the Group looks to revive growth and improve performance in the second half of the year.