Release Early Warning &Nbsp; Profit Growth Or Fall

This year's biggest sportswear manufacturer in China has been embarrassed this year. In July 7th, the company issued an early warning that it had been subjected to Raw material price The impact of rising and so on is expected to increase profits in the first half of this year. Gross profit margin They were all down compared with the same period last year.

The stock price dropped sharply when the bad news was released.

According to the company's earnings warning notice, it is estimated that by the end of June, the net profit margin of the company will fall to 6%~7% from 12.9% in the same period last year, and the overall revenue will also decrease by 5% compared with the same period last year. Gross profit margin will drop 1 percentage points, while the overall cost rate will increase by 7 percentage points over the same period last year.

It seems to be expected that in December last year, the company announced that the average retail price of clothing and footwear products rose by more than 8% in the second quarter of 2011, and the number of orders decreased by more than 7% and 8% respectively. Order The amount decreased by about 6% compared to the same period last year. After that, the stock price went down all the way.

In May of this year, the company's chief operating officer, Guo Jianxin, chief market official Shi Wei, and Lin Lin, director of e-commerce Department resigned again.

From last year's earnings report, the company's revenue in the first half of 2010 was 4 billion 504 million yuan, an increase of 11% over the 4 billion 51 million yuan in 2009. Meanwhile, the cost of sales in the first half of this year increased by more than 10% compared with 2 billion 115 million yuan in the same period last year.

Publicly available data show that in 2010, the company had 129 distributors and more than 2000 distributors. Most distributors are relatively small in scale and operate 2 stores on average. In fact, more than 1700 distributors operate only 1 stores.

Behind the "small and scattered" distribution team, there are uneven management capabilities. "We note the retail management capabilities, procurement capabilities and products of most distributors. life cycle The management is relatively weak, resulting in their single store efficiency and operating profit margins are not ideal. He said.

In fact, after the 2008 Olympic Games, domestic sporting goods began to shuffle, while the whole industry showed signs of slower growth.

The holding of the 2008 Olympic Games led to the increase in revenue and turnover in the first half of the year (KAPPA), compared with a year-on-year increase of over 50%. At that time, the revenue rose by 174.3% in the first half of the year. In the first half of 2009, the highest turnover in the 4 enterprises was the trend of China, which was only 33.5%. In the first half of 2010, the turnover of the 4 enterprises increased by 22.6%.

In this announcement, in the future outlook, we still put the channel reform in the first place, including strengthening the management of retail market and improving the efficiency of retail sales.