Sports Brand Trumped Performance Slump Lining Net Profit Plunged 80% In The First Half

Accompanied by the announcement of Lining's semi annual report, the six largest domestic companies

The semi annual report handed out once again confirms the collective downturn in the sporting goods industry.

Of the 6 domestic sports brands, 5 showed negative growth in sales revenue, of which Lining net profit fell by 80%.

Analysts pointed out that the pressure on inventory and the reduction in orders have made sports brands worse in the first half of this year than in last year. "Most sports brand sales will continue to decline in 2012," analysts said.

The performance of the six major sports brands in the first half of this year is horrible.

Among them, Lining's net profit fell the largest, down 80% to 62 million yuan.

Lining, chief financial officer of Zhong Yiqi, pointed out that the severe global economic situation and increased discount to distributors provide direct impact on performance.

The biggest decline in sales revenue is the main Kappa brand's China trend [0.77 -1.28%], which shows that China's sales revenue in the first half of this year was 832 million yuan, down 29.4% from the same period last year.

"From the earnings data, domestic

The pressure of performance growth is very large, the number of stores is decreasing, and the reshuffle of the terminal market has started in the number of Brand Company stores.

Ma Gang, an independent critic of footwear industry, pointed out.

Yesterday, Lining executive vice president Jin Zhenjun said that in the first half of the year, the company closed 952 stores, and the intensity of closing stores in the second half of the year will be reduced.

Lining group also said that according to the results of the 2012 annual order meeting, it is expected that the whole year will lose money.

Bad performance has also dragged down the share prices of these sports brands.

Since the beginning of this year, the domestic sports brands have lost their share in the big market, of which Anta, China's stock price has been cut short, and PEAK, 361o and Lining's share price has fallen by more than 40%.

"Inventory is still a big problem for quite some time," Ma Gang pointed out. In the future, the sporting goods market will be further concentrated, and some brands will be faced with pformation, cutting into market segments or switching to other fields.

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Nike announces price increase of 5% to 10%

As domestic sports brands collectively fall into the mire of performance, the sales of international brands Nike and Adidas have maintained double-digit growth, but they must also face rising cost pressures.

Nike announced that the price of shoes and clothing will be increased by 5% to 10%.

This autumn, Nike will launch the most expensive sports shoes tenth generation LeBron.

The price is expected to be about 2003 yuan, while the ninth generation is about 1590 yuan.

Industry analysts say the growth of raw materials, pportation costs and human costs in the last two years has brought pressure on Nike's profit growth.