EEKA Fashion sees net profit rise despite revenue decline

EEKA Fashion Holdings Limited reported a net profit of 288.99 million yuan for the six months ended June 30, 2025, a 2.17% increase from 282.85 million yuan in the same period of 2024. This growth occurred despite a 6.12% year-on-year revenue decline to 3,104.02 million yuan, reflecting broader market contractions in China's luxury clothing sector. Basic earnings per share increased to 42.6 cents from 40.5 cents.

The company's gross profit margin slightly increased to 76.41% from 76.30%. Revenue from self-operated retail stores decreased by 7.69% to 2,431.38 million yuan, influenced by economic uncertainty. However, e-commerce revenue grew by 8.88% to 594.88 million yuan, driven by strategic digital initiatives including Douyin live streaming sales.

The Group's financial position remains healthy, with current assets of 3,297.50 million yuan and a current ratio of 1.95 as of June 30, 2025. Net cash flows from operating activities surged by 98.27% to 895.86 million yuan, bolstering liquidity. Total outstanding bank loans amounted to 480.00 million yuan, resulting in a gearing ratio of 10.61%.