Christmas New Year Sales Peak Season &Nbsp; BELLE Market Bullish Daphne Take A Low-Grade Route

It is coming to the new season of Christmas and new year sales. Although the external situation is uncertain, BELLE shoes (01880) and Daphne (00210) are still looking up.

BELLE's main business is sales Footwear and related products, mainly in the mainland, Hong Kong, Macao and Taiwan.

At the end of June this year, BELLE had its own operations in 300 cities in the mainland.

Sales are still growing.

In the first half of this year, the profit increased by 29% to 2 billion 7 million yuan (RMB). The turnover increased by 24.6% to 13 billion 891 million yuan, and gross margin increased 1.5 percentage points to 57%.

During the period, the turnover of footwear and footwear products increased by 30%, accounting for 63% of total profits; profits increased by 37% to 2 billion 197 million yuan; of which, the income of private brand shoes increased by 29.9%, accounting for 91%, and agency brand revenue increased by 25%, accounting for 7.4%; the rest was international trade, with 80.5% growth.

The sales of sportswear products increased by 16.1%, to 5 billion 143 million yuan, accounting for 37% of total profits and profits increased by 30.5% to 376 million yuan, of which Nike and Adidas accounted for 87% of sales and 17.4% increased.

BELLE International (market, information, commentary) announced that the third quarter footwear business in the same store sales increased by 18.5%, while the sales of sportswear business increased 2.5% in the same store, with 693 stores in the period, including 391 footwear shops and 302 sports apparel stores.

By the end of September, there were 9544 and 4306 footwear and sporting goods stores in the mainland.

After two years of preparation, BELLE is now in a better position to expand and benefit from new businesses, including online retailing, mass market, men's wear, children's wear shoes and shopping malls.

Goldman Sachs published a report that BELLE will benefit from the integration of economies of scale, and enhance the bargaining power, reiterate BELLE's buy rating, target price of 18.7 yuan, that is, 2012 forecast price earnings ratio 22 times.

The bank said it had earlier reported that BELLE could take the lead in sporting goods companies.

According to Goldman Sachs, assuming that the sales and operating margins of each store are similar to those of BELLE, it is expected that 800 stores will generate a profit of 140 million yuan.

Daphne takes a low-grade route.

Daphne takes the low-grade route, owns two brands of Daphne and shoe cabinet, Daphne products sell for between $25 to $35, and shoes are 10 to $20.

The scale of the market is huge, but the competition is fierce. The key is whether we can optimize the whole supply chain, accelerate the speed of goods delivery and reduce the average cost.

In the third quarter, Daphne's same store sales increased by 23%, and its contribution to price and sales accounted for about 50%. The net sales point increased by 167, including 147 Direct stores and 20 franchised stores.

In the first 3 quarters, the same store sales growth rate was 19%, with a net sales growth of 461, including 398 Direct stores and 63 franchised stores.

Looking forward to the future, Daphne will shift its focus to direct stores. This year, 600 new targets can be completed on schedule, and the growth rate of franchised stores will be slowed down. The 200 new franchises will be reduced to 150 by the beginning of this year. The proportion of future franchised stores will decrease to 10%.