Bosideng Has Issued Two Profit Warning Stores.

This year, Bosideng has twice issued earnings warning, respectively, in March and November.

"Under the influence of the domestic macro-economic environment, and in the meantime, the group continued to actively clean up inventory and implement more stringent production planning, and overall revenue declined."

In the latest announcement, Gao Dekang, chairman of Bosideng group, said so.

Reporters noted that Bosideng's main business is divided into three parts: down garment business, OEM processing management business and non down garment business.

During the reporting period, the brand down garment business is still the largest source of revenue for the group, accounting for 47.2% of the group's revenue, while the remaining 37.5% and 15.3% come from OEM business and non down garment business respectively.

In fact, not only is it going to stock, but the adjustment of Bosideng's shop is continuing.

As of September 30, 2015, the total number of retail outlets in the Boston Group's down service was reduced by 548 to 6051, including 123 to 2404 net outlets, and 425 to 3647 net retail outlets in third.

The proportion of retail outlets operated by self operated and third party distributors was 39.7% and 60.3% respectively.

In the first half of the year, the sales of down coats were off season. During the period, the company focused on anti season sales, so the performance of down garment business was not beautiful: the income of brand down clothing business and OEM processing business was 1 billion 211 million yuan and 960 million yuan respectively, down 14.6% and 5.1% respectively.

It is learnt that in order to speed up the inventory clearance process, Bosideng will use part of the third party dealers to sell temporary goods stores in the first half of the year when sales are closed or sub leased in the first half of the year.

"Distributor's operating expenses will save both distribution costs and increase sales channels to clean up inventory for the group."

Reporters noted that by clearing inventory and implementing strict production plans, Bosideng's total inventory decreased by nearly 400 million yuan to 2 billion 52 million yuan compared with the same period last year, a drop of 14.8%.

In addition, its average stock turnover days dropped from 271 days to 221 days, greatly reducing 50 days.

"This also reflects to a certain extent that Bosideng's series of measures to clean up inventory have been effective, and the speed of inventory realisation has accelerated.

Of course, the cost of going to inventory is the decline in revenue.

In response, a garment industry analyst pointed out.