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    Si Jie World Is Turning Around To Gain Losses But Sales Are Still On The Decline.

    2014/9/27 9:04:00 31

    Si Jie GlobalTurn AroundSell

    Hongkong fast fashion Esprit parent Co., Ltd., the global financial holding company, has just undergone a pitional financial year.

    The company adopts a clear strategy of vertical business mode.

    Now it seems that the goal has been achieved.

    Business is expected to remain stable in the current financial year and will resume growth in the next financial year.

    At the same time, in the last financial year ending June 30th, Si Jie realized a turnaround.

    The company's pre tax profit reached 36 million euros (HK $361 million), compared with a loss of 420 million euros (HK $4 billion 200 million) a year ago.

    This good performance has been reduced by nearly 1/3 from the sharp reduction in operating expenses.

    Former Inditex executive Jose Manuel Martinez has been president of the company for two years. Before that, he has said that every expenditure will be carefully audited.

    But in terms of sales volume, the world is still in a state of decline.

    However, according to specific data, the CEO is in line with the decline in the operating area of the store.

    At a fixed exchange rate, the turnover fell by 9.9% to 2 billion 300 million euros.

    But at the same time, the area of stores has also declined or even decreased.

    In terms of square meters and indistinguishes the type of stores, the operating area dropped by more than 10%, which also made the management of the company firmly believe that the turnover of square meters actually remained stable.

    For example, the franchise business in Europe has been reduced from more than 1000 to 931 in one year, and from 500 to 305 in China.

    The problem in China is the most serious.

    Local sales fell by more than 28% to 170 million euros.

    "We are a Western brand that needs to take root in China," the company president said.

    The challenge is to change the minds of our team. They need to work hard to achieve daily sales.

    He also pointed out that the new management in China will take office.

      

    Europe

    Sales fell by 6.3% to nearly 2 billion euros.

    Finally, as in the past, wholesale business is more complex.

    Wholesale sales fell more than 16% over 850 million, while retail sales fell by only 6%.

    For this financial year, Jose Manuel Martinez did not give specific predictions.

    However, the new concept store will continue in less than 200 stores, but the pace will remain moderate.

    He admitted that it was launched in 2011.

    Concept store

    Mistakes were made in the process.

    In his view, this is not integrated into the retail element, that is, product focus.

    Shopping

    (size, color, etc.) and easy to arrange.

    "In general, there are some key retail elements.

    But Berlin's new store is in line with the plan.

    As for the closed shop plan, only 11 of the 61 stores involved have been closed, and another 11 will be closed this year.

    This impact on the balance sheet has been achieved.

    Finally, as predicted, Si Jie is now launching every.day.counts with independent teams.

    As FashionMag Premium has previously reported, the brand new first flagship store will be opened in Amsterdam in October 16th.

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