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    BELLE'S Same Store Sales Fell By 16%, And The Second Quarter Is Expected To Turn Better.

    2016/7/26 19:06:00 33

    BELLEFootwearSportswear

      

    BELLE

    (01880) chief executive Sheng Bai Jiao pointed out after the shareholders meeting in the first quarter (3-5 months).

    Shoe shoe

    Similar store sales fell by 16%, but the second quarter is expected to improve.

    and

    Sportswear

    In line with expectations, there is a good growth.

    In Hongkong, he said that Hongkong's current business situation changed considerably compared with the previous years. The consumption situation of the people in the past year was even worse than that in the middle period. However, he believed that there was still demand for women's shoes in the middle class, so the strategy in the temporary market would not change radically, so there was no plan to close or lay off workers.

    Sheng Bai pepper also said that the future sales prospects are uncertain. It is necessary to sort out sales channels according to brand positioning and find better matching.

    He disclosed that every year there were closed stores and manpower reductions, but the scope was limited. In the past, the market maximization strategy was adopted, but this strategy should not be pursued now.

    Earlier, Credit Suisse lowered the target price of BELLE to 3.5 yuan to maintain the rating of "losing the big market".

    The Credit Suisse report pointed out that if BELLE (01880) decided not to restructure, the group's footwear business profits would drop 25% to 30% a year in the next 3 to 4 years.

    However, structural reforms may lead to a further decline in profits, such as the annual operating profit of footwear business has fallen by more than 50%.

    The report also said that the group's footwear sales in the first quarter fell 16% in the same store, while that in sportswear business increased by 5.5%.

    As the base is low, the sales volume of shoe and shoe businesses will be narrowed in the second half of next year, and the sports business will maintain an increase in the number of units in the next year.

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