Lining'S Sales Revenue Fell By 5% In The First Half Of The Year.

On the morning of July 7th,

Agent

In the first half of the year, the report shows that the overall sales revenue of the group will be reduced by about 5% compared with the same period last year. In addition, the gross margin will be reduced by about one percentage point from 47.9% in the same period last year, due to the impact of the new wholesale discounts and the increase in raw material and labor costs.

The company said that the decline in revenue is the group's efforts to increase channel reform since the beginning of this year. In order to speed up the cleaning up of the retail end inventory, the group recovered some of the dealer's inventory this year. In addition, the futures orders were flat compared with last year, and the number of cash orders was less.

In the first half of 2011,

The number of factories is 191, and the same store growth is still at the low unit level in terms of retail data. The number of Lining brand stores is 8163, and the inventory level and retail discount rate are both increased compared with the same period last year.

According to the annual data of Lining brand annual orders in 2011, the annual new product orders increased by about 1% according to the retail pricing, while the annual orders for wholesale shipments decreased by more than 5% compared with 2010.

In addition, the group increased the proportion of self owned shops in the report, resulting in a faster rise in rents. Meanwhile, the group increased its brand investment, which resulted in a 7 percentage point increase in the cost rate during the period from 31.78% in the same period last year.

In fact, since last year

Since the announcement of the brand remolding strategy, the adjustment of the channel has not brought about the expected increase in revenue during the period, and the order volume has declined for two consecutive quarters. It is the personnel concussion and the resignation of COO and CMO of the company. Lining's market has all been questioned.

In fact, in 2003 and 2004, the company was successively arrested.

Beyond that, although Li Ning Co has benefited from the natural growth of the market, the Li Ning Co has maintained rapid growth in recent years, but Lining's brand positioning is slightly embarrassed.

In order to reverse the situation, the company is also actively deepening the strategic implementation plan, further promoting the retail end inventory in the channel, implementing effective creative pformation on the brand, enhancing the proximity between the product and the consumer, and continuously improving the price performance on the product.

In July 7th, Lining's stock closed at HK $11.92, down 12.99%.