Daphne Turns Losses Into Profits In 2021

Daphne international, a footwear brand, recently released its 2021 financial report. As of December 31, 2001, Daphne recorded revenue of HK $106 million, down 71% from the same period in 2020; The profit attributable to shareholders was HK $53 million, which turned losses into profits compared with the loss of HK $242 million in the same period of 2020.

According to the financial report, the improvement of revenue is related to the transformation of the brand itself. In 2021, Daphne realized a major transformation, started again with a new asset light business model, and successfully turned losses into profits in the second half of the year, laying the foundation for long-term development.

This new model makes Daphne transform from a retailer to a brand of light capital products, which not only relieves the management cost and inventory pressure, but also strengthens the brand management. In 2022, Daphne will also continue to launch new systems to simplify workflow and optimize business models.

By the end of 2021, Daphne franchisees had operated about 190 physical stores and 250 online stores. During the year, royalty income increased tenfold to HK $58.2 million.