Daphne International Holdings expects to report a significant decline in earnings and a low single-digit net margin on sales for 2013, due in part to extraordinary charges for the closure of some stores and higher inventory writeoffs. Same-store sales were down by 10.4 percent for the full year and by 5.4 percent for the fourth quarter because of a slowdown in consumer spending, warm weather conditions in October and November, and keen competition in the market. The management is expecting a better performance in 2014 as a result of several measures.