BELLE Takes The Three Or Four Line Market As The Main &Nbsp, Expanding The Sales Outlets Of Medium And High Grade Brands.

March 24th mainland shoe giant BELLE The International (1880) reduced the proportion of sportswear sales. Last year, the performance was satisfactory. The net profit was recorded at 3 billion 425 million (RMB, the same below), rising by 35.2% per year, and 40.6 points per share. market Expect. Management said that footwear business growth will still be faster than sports apparel business, the company will continue to expand at an annual rate of 10%, mainly to expand the brand of high-end footwear. Sales outlets Three or four line market.

Business spanformation results

BELLE used to walk on two legs of fashionable leisure footwear and medium and high grade sportswear, but after 2008, the development of international brand sportswear was in a bottleneck. The company began to adjust its business structure since 2009, and gradually increased the proportion of footwear business, and it began to achieve results in 2010. By the end of last year, BELLE's annual revenue recorded 23 billion 710 million, an annual growth of 20%, of which footwear business accounted for 61.8%, an annual increase of 24.9%, and same store sales increased by 17%.

Chief executive Sheng Bai Jiao said that with the acceleration of urbanization in the mainland and the increase of residents' income and the demand for medium and high grade footwear, the growth of the same store sales of footwear business is expected to remain 14% to 16% this year. BELLE last year, the total number of new outlets 1562, the total number of about 12000, Sheng Bai pepper refers to the future growth rate of 10% per year, footwear business is still the core.

Sports apparel business, he said, the same store sales growth of 5% last year, this year can be maintained, but last year, Nike and Adidas and other front-line brand sales growth of 16.5%, Kappa, Converse and other second-line brands regress 7.3%, so the company will continue to operate the first line brand in the future.

Gross profit margin rose to 55.7%

Last year, BELLE's gross margin rose from 53.3% in 09 to 55.7%, with footwear increased by 2.6 percentage points to 68%, and sportswear increased by 0.2 percentage points to 35.9%. Sheng Bai pepper said that this year will raise the overall spanaction price by 3% to 5%, in order to reduce the pressure of raw materials and artificial rise. The pressure of store rents will be resolved by improving the efficiency of single store sales. It is estimated that the gross profit margin will be maintained throughout the year.

Liu Lili, an international analyst at Bank of communications, believes that due to the higher gross profit of fashion shoes, BELLE will continue to increase the proportion of footwear business, and the growth of the industry will remain at double-digit levels. Zhao Xiwen, an international senior analyst at XinDa, also said BELLE's business structure will continue to drive operating profit margins. The growth momentum of the company in the next two years will also come from the footwear business.

However, some analysts believe that because of the higher licensing sales expenses of the high-end shoe sales outlets in department stores, expanding expansion will increase BELLE's operating expenses or lower profit margins. BELLE's share price fell 0.71% yesterday, and it closed at 14 yuan.