Daphne International Holdings Limited announced unaudited sales results for the fourth quarter and year ended December 31, 2015. For the quarter, the company reported same-store sales of the group's core brands business recorded a year-on-year decline of 20.2%.

The same store sales growth of the core brands for the full year of 2015 is decreased by 18.5%. The sales during the period were mainly affected by: Soft consumer sentiment along with weakening economy in China. Unusually warm winter. Dilution of store traffic from the Single's Day online promotions in November. More competitive retail environment resulted from earlier launch of deep discounts by peers.

The Board announced that, based on preliminary review of the unaudited consolidated management accounts of the Group and the information currently available, the Group expects to record a material loss attributable to equity holders of the company for the year ended December 31, 2015. Such loss is mainly attributable to (i) significant drops in both sales and gross profit; (ii) increased negative operational leverage; and (iii) certain operational charges related to, among others, inventory, personnel and store rationalization.