French women's wear and lingerie retailer Etam Developpement has reported a 7.4% decline in first-half operating profit as problems at its Chinese franchise offset rising revenues.

In a statement late Thursday (28 September), the company said profit fell to EUR30m (US$42.7m) as revenues increased 10% to EUR510m. Like-for-like turnover rose nearly 8%.

Despite the operating challenges, net income attributable to shareholders rose slightly to EUR15.3m compared to EUR14.9m last time.

Etam said operating income from its Chinese operations plunged 38% amid weak like-for-like sales, difficult trading and a negative foreign exchange situation in the country.

Etam noted it is working to overahul its Chinese operations by hiring new management and reorganising its store network.

The company did not provide trading details for its European operations.