Profits From Manufacturing Business Stabilised Shoes Surged In The First Quarter Of Business

Thanks to the stabilization of manufacturing business, the world's largest fashion shoe manufacturer Stella International Holdings Ltd. Ltd. nine Holdings Limited

By the end of March, revenue rose 10% in the first quarter from $279 million in the first quarter of fiscal 2016 to $307 million.

During the first quarter, group manufacturing business benefited from sports.

The increase in record orders was up 6.8% to $285 million 700 thousand, which was $267 million 600 thousand in the first quarter of 2016, of which the shipment increased by 8.5%, from 10 million 600 thousand pairs in the first quarter of 2016 to 11 million 500 thousand pairs, offset the average price of 1.6%.

In the first quarter, the average selling price of group products was US $24.8, which was further down compared with us $25.2 in the same period in the 2016 fiscal year.

Nine Xing group said that the decline in prices was mainly due to changes in product mix.

The nine Hing Group said that the demand for sports shoes will continue to be the driving force of the group's growth, while the demand for leisure and fashion shoes tends to be more stable this year. In addition, the group wants to divestiture to retail business, and has also improved in terms of continuous closing and low base.

By the end of the first quarter of March, the nine Xing group's retail revenue in China recorded a total of US $15 million 800 thousand, representing a 15.3% increase compared with the US $13 million 700 thousand in the first quarter of fiscal 2016 and a 9.2% increase in the same store sales. The Chinese market ended up with 182 Stella Luna stores in the first quarter of the first quarter (174 in the same period last year), 58 What For stores (60 in the same period last year) and 1 JKJY by Stella stores (the same period last year).

European retail business income of $4 million 700 thousand, an increase of 23.7% over the same period, the same store sales increased by 7.7%.

In the 2016 fiscal year ended December 31, 2016, the nine Xing group recorded a revenue of 1 billion 550 million 900 thousand US dollars, a 12.4% drop compared with 1 billion 769 million 900 thousand US dollars in 2015, and shipments dropped 9.1% to 52 million 900 thousand pairs, and the average selling price of each pair dropped by 4.1% to 28.1 dollars.

During the period, the gross profit margin of the group was 21.8% to 290 million 500 thousand dollars, and gross margin 18.7% fell 230 basis points.

In 2016, the group's net profit plunged 32.6% to 81 million 577 thousand dollars, and in 2015 it was 121 million dollars.

For the bad performance in 2016, the nine Xing group said that the drop in net profit was mainly caused by the global political instability and similar destructive events such as the result of the British referendum. The Chinese companies, including shoe brands, were very cautious when making business decisions, while consumer preferences were changing rapidly. The current "sports and leisure" style was popular and continued to change the retail pattern of shoes.

Chen Limin, chief executive of nine Xing group, said that changes in the global political climate and consumer tastes had an impact on the financial performance of the nine companies in 2016. However, the ability to cope with these changes was stable at the end of last year, and some factories' efficiency and efficiency were partially restored to a healthy level, which enabled the group to recover some of its profits by the end of last year.

The group has been actively adjusting its manufacturing business to better cater to the growing popularity of traditional sports shoes such as sports and leisure shoes.

According to the nine Hing Group, the strategic adjustment includes replacing some group's current non sports shoe productivity to meet the increasing demand for sports shoes, while reducing the number of employees to better control costs.

During the period of 2016, the footwear footwear group contributed 42% of its revenue, down 400 basis points from 2015, while casual shoes and sports shoes contributed 29% and 24% of the revenue respectively. Among them, the proportion of sports shoes increased significantly by 710 basis points, while the proportion of casual shoes contributed 350 basis points.

By region, North America and Europe are still the main source of income of the group, accounting for 52.3% and 25.1% respectively. China (including Hongkong) accounts for 13.1%, Asia (except China) accounts for 7.4%, and the remaining market accounts for 2.1%.

In 2016,

Retail business showed signs of improvement, revenue fell slightly by 3.1% to 77 million 800 thousand dollars, same store sales fell 6.2% to 50 million 200 thousand dollars, retail gross profit was $53 million, net loss was 16 million dollars.

By the end of the year, the group operated 207 Stella Luna stores, 118 What For stores and 6 JKJY by Stella stores.

Last year, nine Xing sold 60% of its retail business and a majority stake with the max group.

It is expected that the business will be split or listed in three years.

For more information, please pay attention to the world clothing shoe and hat net information report.