Momo.com Inc (富邦媒體) saw its net profit plunge 9.77 percent annually to NT$309.92 million (US$10.21 million) in the first quarter, affected by warm weather that weakened sales of winter clothes, the multi-platform retailer said on Thursday.
“Taiwan faced its strongest cold stream in 10 years in January last year, which largely helped the sales of higher-margin winter clothes and caused a higher comparison base,” Momo.com said in a statement.
Momo.com, a subsidiary of the nation’s second-largest telecoms operator, Taiwan Mobile Co (台灣大哥大), is a television, online and catalogue shopping retailer.
Earnings per share were NT$2.21 during the January-to-March period, compared with NT$2.45 per share in the same period last year, the company said.
The weak demand dragged Momo.com’s gross margin down 1.87 percentage points to 10.99 percent on an annual basis, while its operating margin contracted by 1.13 percentage points to 4.13 percent, the firm said.
Despite the earnings contraction, Momo.com said that its net income for last quarter surged by 6.86 percent from the prior quarter’s NT$290 million, due to increasing revenue from its online shopping site.
Gross margin improved 0.09 percentage points from the prior quarter’s 10.9 percent, while its operating margin added 0.04 percentage points from 4.09 percent, the company said.
Looking ahead, Momo.com said it will expand its collaboration with brand companies to increase the product diversity of its retail channels amid a competitive market.
It has established an outlet zone on its online shopping site in a bid to boost sales by attracting consumers to purchase designer brand products at outlet pricing, the company said.
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