Daphne International Holdings Limited provided earnings guidance for the full year ended 31 December 2016. For the year the Group expects that the net loss would increase by approximately more than 50%. The loss was mainly attributable to: Significant decrease in sales; Negative same store sales growth; Decreased gross profit margin resulted from aggressive clearance efforts and a higher weighting of aged products in the overall sales mix; Certain operational charges related to inventory and store rationalization. Nevertheless, the Group's net cash was improved and the inventory level decreased as a result of liquidation of aged inventory. Also, the Group's e-commerce continued to achieve sales growth.