China's EEKA Fashion H1 revenue falls on weak store sales

EEKA Fashion Holdings

25/08/2026 13:48

Overview
China branded ladies-wear retailer's H1 2026 revenue fell 12% yr/yr due to weaker store sales
Net profit for H1 2026 rose 1% yr/yr, basic EPS remained flat
Company attributed revenue decline to challenging retail conditions and shifting consumer behavior

Outlook
Company expects continued recovery in consumer confidence and purchasing power in H2 2026
Company sees mid-to-high-end brands maintaining competitive edge amid consumption upgrading
Company expects policy support to further boost consumption in the sector

Result Drivers
RETAIL STORE SALES DROP - Co said revenue decline was primarily due to lower sales at existing self-operated retail stores
E-COMMERCE CHANNEL MIX - Douyin and WeChat Video Channel sales rose over 50% due to increased advertising and focus on live streaming, offsetting declines in Tmall and VIP.com
WHOLESALE GROWTH - Wholesale revenue to distributors rose 51% as market confidence and consumer demand remained stable

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
RMB 2.73 bln
 
H1 Net Income Attributable
 
RMB 287.20 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for EEKA Fashion Holdings Ltd is HK$10.66, about 111.1% above its August 25 closing price of HK$5.05
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)