It's True Cinderella That Doesn't Wear Crystal Shoes.

As the first leg of women's shoes in the A share market, Foshan, once popular in the capital market.

Shoe Limited by Share Ltd (002291, hereinafter referred to as "Saturday") did not give investors a satisfactory answer after the listing.

Since the three quarter of last year, inventories have been innovating, performance is lower than expected, huge tax tickets have been issued because of tax evasion and tax evasion, plans for nearly a year have been announced, and the poor performance of channel expansion shops has been shut down.

Businesses fall to the bottom.

Before the IPO roadshow, the 4 major fund-raising investments were planned for two years, and none of them had been achieved.

Faced with all kinds of doubts, Saturday began to step on the brakes and delay the rapid expansion of the channel. Shifting the focus of operation from the expansion of the number of channels to adjusting the store structure, improving the performance of shops, and improving the quality and efficiency of operations become the top priority.

On September 2009, at the ceremony on Saturday, Zhang Zemin, chairman of the board, presented a crystal shoe to the Shenzhen Stock Exchange as an exchange gift. But crystal shoes may not make Cinderella the "Princess" in the eyes of investors.

Before truly becoming a princess, how to maintain the scale growth while ensuring the company's performance, how to improve the management level and more meticulous are the obstacles for the management of the Saturday.

At the beginning of Saturday, many people in the market were optimistic, but its net profit growth has disappointed investors in recent years.

According to its earnings report, operating income in 2010 was 1 billion 143 million yuan, an increase of 29.91% over the same period last year. Net profit was 100 million yuan, down 11.71% from the same period last year.

Its performance report in 2011 showed that the operating income of the reporting period was 1 billion 348 million yuan, an increase of 17.94% over the previous year, and realized a total profit of 140 million yuan, an increase of 3.15% over the same period last year. However, the net profit attributable to the parent company was 99 million 444 thousand and 800 yuan, a decrease of 0.85% over the same period last year.

The first quarter of 2012 remained flat in the first quarter of 2012, with no significant improvement in performance.

The results showed that operating income, net profit and EPS in the first quarter were 372 million yuan, 25 million 166 thousand and 700 yuan and 0.07 yuan respectively, representing an increase of 13.33%, -1.84% and 0% respectively.

The first quarter was the promotion season for footwear products. The gross profit margin of the company was 49.24%, which was 2.98 percentage points lower than the gross margin level in 2011, but it was 1.05 percentage points higher than that of the same period last year.

Industry analysts generally believe that the slow growth of net profit on Saturday is lower than expected. On the one hand, the company's channel expansion process is relatively slow. On the other hand, the company's sales expenses have increased rapidly and dragged down its performance growth.

In the first quarter of this year, the cost rate increased by 0.74 percentage points to 37.57% over the same period last year, and sales cost rate, management cost rate and financial cost rate increased by -0.01, 0.48 and 0.27 percentage points respectively.

Overall, the company's operational capability needs to be improved.

Some analysts believe that since the listing on Saturday, there has been more investment in channel expansion, and the new store has made a profit process. So it seems that the net profit growth in the near future is not as good as expected, but in the long run, its prospects are good.

Listing has made a great reputation on Saturday, and brand awareness has increased a lot at the same time, but to get consumers to buy it, it requires a high market coverage.

Unlike clothing, jewelry and other fashion products, advertising oriented brand construction is different. The brand of footwear products is mainly driven by channels. Large scale channel expansion can make the brand penetrate into the consumer's mind as soon as possible.

On Saturday, vice chairman Yu Hongtao was well aware of this. He said that the scale of sales of women's shoes should be kept at a relatively moderate scale before they could gain competitive advantage.

But compared to rival BELLE International (1880.HK) stores, tens of thousands of stores on Saturday, 1000 of the number of stores is really poor.

So after the listing on Saturday, the funds raised will be used for the expansion of terminal retail outlets.

Originally, the funds raised on Saturday were mainly used for the construction of four items: the expansion of women's shoes chain stores, the extension of women's shoes production lines, the logistics distribution system, and the technological pformation of R & D centers.

In the 570 million yuan of fund-raising, 430 million yuan invested in the renovation project of women's shoes chain store expansion.

At that time, 1311 stores in the prospectus on Saturday said that after the implementation of the project, the company will add 900 self operated stores. It is expected that 2050 self operated stores will be built in 2011, that is, 900 new self operated stores in two years, with an average of 1.2 outlets per day.

In addition, there are 122 million yuan for the expansion of the production line. After the project is put into operation, it is expected to achieve an annual capacity of 6 million pairs of women leather shoes.

But later, considering the rising cost of production, after investing 8 million 509 thousand and 500 yuan, it decided to terminate the plan on Saturday, leaving the remaining 110 million yuan for 240 sales chain stores on the basis of 900 self operated stores.

In the face of two choices of channels and technological pformation, it was thought that the expansion of stores should be accelerated on Saturday.

Yu Hongtao said that Saturday's competitive advantage and the focus of its business in brand operation and channel construction, as well as resource allocation, is also a priority of brand and channel. Changing the production of women's shoes extension project to raise funds will help enhance Saturday's core competitiveness in brand, channel and other fields.

As for shoemaking, outsourcing can be chosen to meet market demand.

However, the expansion of the channel on Saturday was not ideal, after the prospectus described the "two thousand stores" business plan failed to achieve.

According to Saturday's report, as of the end of last year, the total number of brand chain stores was 1961, an increase of 248 over the same period in 2010, of which 1517 self operated stores, 240 more than the same period in 2010, 444 outlets, 8 more than in 2010.

With detailed data, we can easily find that more than 400 new stores opened in 2010 and more than 200 stores opened in 2010. In 2011, there were more than 300 new stores and a net increase of more than 200, that is, opening 3 new stores at least 1 stores.

It is understood that the newly opened stores are mainly accompanied by the subsidence of department stores and more channels in the two or three tier cities. The sinking of channels contributed to the growth of sales revenue on Saturday, but also brought about a decline in store efficiency and so on.

This also means that along with the rapid expansion of channels, the quality of the channel has dropped to a certain extent on Saturday, and some newly opened stores are hard to achieve sales.

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Sales costs have risen sharply, and the average store efficiency of newly opened shops has become the two biggest obstacle to Saturday's development.

Reporters noted that with the rapid expansion of channels, Saturday's sales expenses increased by 97 million 161 thousand and 200 yuan, an increase of 30.41%, mainly including the newly opened self owned stores, an increase of more than 1000 sales personnel, as well as shopping malls management fees.

Against this background, operating income increased by 17.94% on Saturday, 2011, less than expected.

On Saturday, Ceng Yangqing, deputy director of the media, said in an interview that store expansion is necessary because of the need to expand sales channels and increase company performance.

Shoe store is following commercial real estate expansion. When the new shopping mall's new channel is not yet mature, its entry conditions are relatively loose, and the company has priority in shopping malls.

But if we do not go in and prove that the market is good, the conditions for shopping will be even more severe.

He admits that in the process of opening a store, the company is also closing the shop. The maturity of commercial channels needs a process. If two years later, passengers still can not see the trend of improvement, they will generally choose to close some inefficient shops and cause a decline in their performance.

Strong dependence on shopping mall channels will make the expansion of enterprises relatively limited.

If we want to make a breakthrough on the three or four line market on Saturday, we must enhance the profitability of the sub brands.

Liu Wei, an analyst at Anxin securities, said that BELLE, the leading women's shoes company, increased 20% of its stores annually and maintained more than 20% of its same store sales growth. On Saturday, the same store sales grew by about 10%, indicating that the latter's management efficiency needs to be strengthened.

In the long run, store growth is right, but the net profit of stores is slowing down, and brand competitiveness is also crucial.

If BELLE's many brands are relatively mature, new stores have lower cost and faster returns, and many brands have not grown on Saturday.

Ceng Yangqing also said that some of the shops that closed were mainly "Sophia" and "69" brands other than the "Saturday" brand, because the maturity of these brands was not enough enough to meet the national brand requirements.

Despite the implementation of the multi brand strategy on Saturday, the income of the brand Sophia and Fei Bai Li increased by 20.18% and 51.38% respectively, and sales volume reached 258 million yuan and 181 million yuan respectively, but the performance remained the same in 2011. The performance was still at a low profit margin and break even stage.

In the early stage, due to insufficient funds, in the process of building multi brands, the brand strategy that was broken down on Saturday was one by one, one by one, one by one.

Yu Hongtao said that the company has designated a reasonable breeding period for every brand.

For example, in the past few years, when pushing the brand on Saturday, we adopted a design mode that combines R & D and outsourcing theme fashion design. Designers, marketers and marketers have formed a trinity team to ensure that products are closely related to fashion and open the market. Moreover, Saturday's shop is also the main force in the early stage of channel laying.

After the "Saturday" brand matures, we will push the "Sophia" brand on a large scale.

BELLE's multi brand operation is relatively ahead.

According to a survey, there are only a dozen brands of leather shoes with an annual sales exceeding one billion, while the BELLE family accounts for 6, such as BELLE, her, Teenmix, Staccato and so on.

In view of the fact that the benefits of store expansion are not obvious, it said on Saturday that the focus of operation in 2012 will be shifted from the expansion of the number of channels to the adjustment of store structure and the improvement of store performance.

Its annual report 2011 shows that Saturday will enhance product development capabilities, enhance quick replenishment capabilities and operational control capabilities, increase sales volume under the premise of maintaining a reasonable gross margin, strictly control inventory growth, speed up the building of new brands, improve operational quality, enhance brand profitability, increase channel adjustment efforts, enhance the efficiency of single stores, strengthen the expansion of network sales and distribution stores, and increase the intensity of talent selection and training to achieve this goal.

The low efficiency of new stores also brought another worry to Saturday: inventory remained high.

As of Saturday December 31, 2011, the conversion amount of stock was about 800 million yuan, accounting for 39.13% of total assets.

In one year, 615 million yuan was stored in memory, 42.51% higher than the beginning of the year, 146 million yuan for the first to two years, 27.45% higher than the beginning of the year, and 99 million 431 thousand yuan for the inventory over the past two years, an increase of 68.93% over the beginning of the year.

Guo Jin Securities researcher Zhang Bin pointed out that Saturday's stock is not a sudden increase, but a cumulative result in recent years. The increase in stock mainly stems from the opening of stores. The inventory brought by the fast opening shop is very obvious.

For example, he said, opening a new store, especially in the incubation period, requires a cost of 300 thousand yuan for a quarter, of which 210 thousand yuan is the amount of raw stock, and the other 12-13 yuan is for the purpose of maintaining the need for turnover. The larger the storefront, the greater the amount of stocking. If the shop fails to meet the expected period, stock will become stock.

Haitong Securities analyst Lu Yuanyuan also pointed out that the main reason for the persistent high inventory on Saturday was the failure of the company's sales strategy and the reasons for the new store's stock.

In 2009, the company had fewer new stores, and the management wanted to continue to maintain a relatively high growth rate after the listing.

In 2010, we began to restart the fast start shop plan.

In addition, there are some problems in supply chain management of the company. Outsourcing of some processes such as vamp process causes the supply chain reaction speed is not fast enough. Once the terminal market changes, it will not cause excessive inventory in production.

At present, the company has 6 orders throughout the year to improve the accuracy of product development.

And reduce the proportion of the first order, and increase the number of replenishment.

Saturday 2011 Annual report also admitted that in the past two years, with the rapid expansion of the company's scale, the total inventory has also risen sharply, bringing greater pressure to the company's subsequent operations.

On Saturday, management attaches great importance to the inventory problem. It lists sales and inventory control as the focus of day-to-day operation and management, and also sets out a series of countermeasures for inventory control. For example, from the three quarter of last year, the approval requirements for new stores have been increased. If the profit and loss cycle is longer, it is generally not allowed to be approved. However, there is still a risk that the total inventory will continue to rise in the short term.

In the face of high inventory problems, brands often use local special stores, discount promotions and e-commerce platforms to sell, and when prices are favorable, inventory can also be quickly emptied. This is also a strategy that has been adopted consistently on Saturday.

However, according to industry analysis, the inventory cycle of inventory products on Saturday is generally longer, and the inventory of products over a year accounts for a large proportion.

Gao Cunhuo's high inventory price drop may be an important factor affecting Saturday's performance.

"At present, there is a lack of uniform standards for how inventory is included in financial statements, and the financial strategies adopted by different companies are not the same.

It is hard to estimate the proportion of inventory products on Saturday.

But from the two indicators of total inventory and inventory cycle, this figure should not be low.

The industry said that the speed of opening shop, the decline in quality of operations, increased inventories, which all engulfed the profits on Saturday.

In addition, with the sharp increase in the number of stores, the upgrading of management and control systems and management capabilities will also be a serious problem faced by enterprises that start from a spouses shop and turn from private enterprises to listed companies.