Shoe Retailer BELLE Group Is Undergoing An Orderly Pformation.

China's largest

Retailer

The International Holding Company Limited held a shareholders' meeting on Tuesday, and chief executive Sheng Bai Jiao interviewed the shareholders after the meeting. The group was in an orderly pformation. The footwear business performance in the two quarter was better than that in the first quarter.

At the press conference at the end of May, BELLE's first record of earnings retrogression in the past 9 years, Sheng Bai said frankly that he felt guilty, and issued a group's failure to pform, but faced with a huge risk of pformation, and the pessimistic remarks that accelerated the decline in performance, the retail market was in an uproar.

Because, as the largest

BELLE has always been a barometer of China's economy and retail industry.

Deutsche Bank AG (DBK.DE) Deutsche Bank, Credit Suisse Group AG (VTX:CSGN), Credit Suisse, and JPMorgan Chase & amp; Chase (VTX:CSGN), J.P. Morgan chase respectively maintained their own rating of "buy", "sell" and "neutral" after the annual report of the group. The target price of HK $6.49, HK $3.5 and HK $4.5 remained unchanged.

Morgan Stanley (NYSE:MS) Morgan Stanley lowered the target price of BELLE international from HK $6.1 to HK $5.3.

Although Sheng Bai Jiao said BELLE group's footwear business improved in the two quarter, the same store sales decline could not be reversed.

According to the website data, in the first three months of May 31st, the sales volume of BELLE international footwear business in mainland China decreased by 16% compared to the same period last year, and has fallen by more than 10% in three consecutive quarters.

At the same time, the growth of sports and clothing business continued to slow down, while domestic sales in the same period grew by only 5.5%, while the growth rate in the previous three quarters was over 6%.

Sheng Bai pepper pointed out that the double-digit decline of footwear business in the first quarter was partly due to weather factors, which will be improved in the two quarter, while sports apparel business also recorded an expected growth in the two quarter.

He also said that China's overall consumption growth was clear, but the structural changes in consumption were relatively large.

However, the development of the department store industry is worse than that of two or three years ago. The brand can no longer develop in a single direction. The pursuit of a single market maximization requires brand pformation. He reiterates that "no pformation can not be done" and will carry out pformation work in an orderly way.

For the specific pformation plan of BELLE group, Sheng Bai Jiao is in an orderly manner and hopes to complete it before retirement.

The pformation includes sorting out the store structure and re examining the number and location of stores, including closing down shops with poor profitability.

According to the website data, as of the end of the first quarter of May 31st, BELLE group has 20876 direct retail outlets in mainland China, 13655 of which are footwear stores, 7221 of which are sports and clothing stores, with a net loss of 107 and a net increase of 110 over February 29th.

Speaking of the Hongkong market, Sheng Bai Jiao is even more pessimistic, saying that continuous tourists reduce business environment, and rental costs and other fixed expenses are much higher than the mainland market. Therefore, sales have a greater impact on profits, compared with the "occupy" in 2014, the impact of tourists' downturn in 2015 is even greater.

On Tuesday, Belle International Holdings Ltd shares rose 1.522% to HK $4.670, which has plunged more than 17% so far this year and plunged more than 43% in the past year.