Footwear retailer Daphne International Holdings has booked a slump in second-quarter sales as a result of store closures and poor weather conditions.

In the period ended 30 June, same-store sales were down 2.4%. This compared to a drop of 9.5% in the previous quarter.

As a result, the same store sales growth of its core brands business fell 5.5% in the first half.

Store traffic in May was adversely affected by heavy rainstorms and widespread flooding across much of mainland China, the company said, resulting in a drag on overall sales for the quarter.

In addition, inflationary pressure on key operating costs such as rental and labour costs further affected the firm's operating margin, it said.

Increased diversity of marketing activities, however, particularly those related to new product launches and e-commerce, continued its solid sales momentum.

The group said it remained cautious in its store network development and closed 32 stores in the period, concluding the first half with a total of 85 closures.