Net Income Of Seven Wolves Is Both Down. Performance Recovery Still Takes Time.

This year, the seven wolves continued to close inefficient and invalid shops, and recovered some of the franchisees. It is understood that more than 100 stores which were recovered by the seven wolves last year were operated by the company's retail team.

Recently, Anta, PEAK and other local sportswear brands have repeatedly heard good news in the 2015 order meeting, and their performance has also been reviving. Before that, the men's clothing brand, which is also suffering from the dilemma of "high inventory and terminal downturn", is still not optimistic.

Yesterday's earnings report showed that in the third quarter of 2014, seven wolves achieved a business income of 707 million yuan, a sharp decline of 20.24% compared with the same period last year, of which the net profit attributable to shareholders of listed companies was 77 million yuan, down 33.72% compared with the same period last year.

This is the third financial statement issued by seven wolves this year.

According to the seven wolves, the net profit margin of shareholders in 2014 is -40%~-20%, and the net profit attributable to shareholders of listed companies is estimated at 227 million yuan ~3.03 billion yuan, far below the net profit of 379 million yuan in the same period last year.

Seven wolves management said that the company's "orders for 2014 meeting" received a reduction in customer orders, so this year's performance decreased compared with the same period last year.

Cheng Yuan, an analyst with [-1.18% funds, said that the main reason for the continued decline of the seven wolves revenue was due to the adjustment and reform of the dealer mode. "We judged that the direct operation was basically flat and the franchise was still falling."

This year, the seven wolves continued to close inefficient and invalid shops, and recovered some of the franchisees. It is understood that more than 100 stores which were recovered by the seven wolves last year were operated by the company's retail team.

In the first half of this year, seven wolf stores closed 347 stores, with a total number of 3155 stores.

Online channels, in the first half of 2014, the total sales revenue of the seven wolves was about 130 million yuan, up 20% over the same period last year.

Previously, seven wolves management has said that from the current situation, the company's macroeconomic environment and external environment has not improved significantly. In the second half of 2014, the company will continue to implement the business objectives set at the beginning of the year, further promote strategic pformation, and promote retail capacity building.

Recently released research report that seven wolves are still in the adjustment period, performance recovery still need time.

A number of agencies' research reports also believe that this year is still the year of adjustment for the seven wolves.