Pathfinder: The Trend Of Rapid Expansion Is Not Diminished.

Sports and leisure products since the beginning of the year

Growth in hopes of franchisees

From the perspective of public information, the Pathfinder has already established a nationwide marketing network, but in its sales network, the proportion of Direct stores and franchisees is seriously unbalanced.

As of December 31, 2009, the number of Pathfinder shops totaled 481, 428 franchisees and 53 Direct stores. In the annual report, the company said it planned to open 150 new stores and complete the information system construction of 200 shops.

By 2010, the company reported that there were 185 newly opened stores, including 45 Direct stores and 140 franchised stores. By the end of the year, the total number of stores running 666 stores was 666.

Compared with 2009, the number of stores increased by more than 38%.

Huatai Securities Research Report believes that epitaxial expansion is the main strategy for the company to rapidly increase its market share and occupy the dominant channel resources.

By the end of the three quarter of 2011, the total number of sales outlets was 965, of which 809 were franchises, 147 were direct stores, and 84.6% were franchisees.

Previously, the company predicted that in 2011, there were 300 new stores and 400 stores' information systems were completed.

Judging from the current data, it is not difficult to complete the goal of opening 300 stores in 2011. According to this figure, the number of shops opened in this year accounted for 6 of the total number of Listed Companies in the previous years.

The marketing network, including franchised stores, has indeed made rapid progress in the past three years. The company also said that it was mainly due to the rapid increase in the number of franchisees with low capital requirements and fast opening. Therefore, the main direction of future channel expansion is still franchised stores.

The 2011 Annual Performance Forecast showed that the total revenue of the company during the reporting period was 750 million yuan, an increase of 73.42% over the same period last year, operating profit of about 130 million yuan, an increase of 99.20% over the same period last year, a total profit of about 130 million yuan, a 103.61% increase over the same period last year, and a net profit of 106 million 456 thousand yuan, representing 97.52% growth over the same period last year.

However, this situation has made analysts worried that before the sporting goods companies first set up channels for business growth, and then faced with the risk of high inventory will be rediscovered in the Pathfinder.

What do the Pathfinder think about the hidden danger of expansion and inventory? Reporters contacted the company's stakeholders, but they failed to get a reply.

Three main battalions

From the periodic reports disclosed by the company, the inventor's inventory has also been increasing in recent years.

In 2009, the stock of raw materials was about 1 million 880 thousand yuan at the beginning of the year, 13 thousand yuan at the end of the year, and about 52 million 310 thousand yuan at the beginning of the inventory, and about 74 million 690 thousand yuan at the end of the year.

The company explained that the increase in inventories was mainly due to stock preparation in the spring of 2010.

In 2010, the inventory of goods was about 95 million 730 thousand yuan at the end of the year.

In fact, comparing the annual reports of Pathfinder, we can see that the company has begun to diversify in the construction of channels. In 2010, the company strengthened the development of diversified new sales channels for e-commerce and group customers, and carried out strategic cooperation with e-commerce websites such as good buy, Amazon, etc., and gradually shared a win-win cooperation mode with the national franchisees in the new channel business, and actively explored new profit growth points.

From the perspective of the main business, the contribution of the three main industries to outdoor clothing is increasing.

The 2009 annual report shows that there is little difference in gross profit margins between outdoor clothing, outdoor footwear and outdoor equipment, with revenues of about 170 million yuan, 66 million 780 thousand yuan and 55 million 360 thousand yuan respectively.

Gross margins were 48.26%, 46.12% and 48.87% respectively.

In comparison, the outdoor clothing of business income increased the most, about 48.61%, and the other two increased by 20.19% and 6.43% respectively.

To 2010 annual report shows that outdoor clothing revenue of about 300 million yuan, the proportion of revenue increased to 67.39%.