Does BELLE Not Make Money By Selling Shoes? 2 Consecutive Profit Declines.

In the evening of May 15th,

International Holdings Limited (hereinafter referred to as "BELLE", stock code: 1880) announced its 2016/2017 financial results announcement for the year ended February 28, 2017.

During the period, the revenue reached 41 billion 707 million yuan, an increase of 2.2% over the previous year, operating profit of 3 billion 555 million yuan, a decrease of 15.4% compared with the same period last year, and net profit of equity holders for the year was 2 billion 403 million yuan, down 18.1% compared with the 2015 fiscal year.

This is the 2 consecutive decline in profits in the 10 years since its listing. BELLE attributed the decline in sales during the shoe brand period to double-digit sales in the same store.

During the period, the income of footwear business decreased by 10 percentage points from the 21 billion 74 million yuan in 2015/2016 fiscal year to 18 billion 960 million yuan.

Gross profit fell 10.5% to 12 billion 691 million yuan, and gross profit margin fell 0.4 percentage points year-on-year, to 66.9%.

At the same time, BELLE also adopted a strategy of shutting down shops and hemostasis, sorting out the initiative of the shop network, evaluating the channel environment with a more cautious attitude, and adjusting or closing some of the shops with poor prospects.

During the period, there were a net reduction of 700 footwear retail outlets in mainland China.

In fact, since the beginning of the 2013/14 fiscal year revenue decline, BELLE has been seeking pformation.

But no matter what its own brands are Belle, Teenmix, Tata, Staccato, Senda, Basto, Joy, Peace, Millie, s, SKAP, SKAP, s, and so on, there are still very few effects on agency brands such as brand, trade, industry, trade, etc.

During the period, due to the poor performance of footwear business, its intangible assets shrank by 1 billion 103 million yuan.

"We strive to make fundamental changes in shoe rate business and find a new way to adapt to the changing times."

BELLE said.

On the other hand, it has been strengthened.

The combination to promote business growth is indeed a timely relief.

During the period, the agency's sports and clothing business realized revenue of 22 billion 747 million yuan, an increase of 15.4% over the same period last year, and the proportion of revenue rose from 48.3% last year to 54.5% in the period. After the interim results surpassed the shoe brand for the first time, it came to stay again.

Gross profit increased from 8 billion 771 million yuan last year to 9 billion 965 million yuan, an increase of 13.6% over the same period last year.

During the period, sports and clothing business increased 543 shops, an increase of 7.6% over the same period.

Among them, the number of first-rate sports brand shops such as Nike and Adidas increased by 252, while the second-line sports brands such as PUMA and Converse increased by 251, and the clothing business Moussy, SLY and REPLAY increased by 40.

All the way red sports and clothing business seem to have saved BELLE, but in fact, temporary solutions are not effective.

As a veteran shoe manufacturer with 25 years experience, it has its inherent advantages in the research and development, manufacture and sale of shoes, and it can come to the field of clothing. It has no source resources, and has been engaged in agency sales, and the source of profit is only the consumers of the final channel.

Contrast

The gross profit margin of 66.9% in the business period is only 43.8% of the gross profit rate of its sports and clothing business, compared with last year, it has already dropped 0.7%.

In the field of clothing, no matter in the upstream supply chain, its own brand value, or business management ability, it does not control the core competitiveness of clothing actually.

It also appeared that the FILA, which was bought for 48 million dollars later, has only been in BELLE for 2 years and has changed hands to Anta.

In terms of its current agency sports and apparel, whether it is ADI or Puma, it itself has a very high premium capability, and the demand for brand business management is not high.

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