A Brief Summary Of The Third Quarter Operating Schedule Of The Telephone Conference

According to the world clothing and shoe net, recently, China and Thailand International released related consumer stocks. 360 degree (3.12, 0.04, 1.30%) (01361) the research report disclosed the minutes of the third quarter operating conference. The details are as follows:

Three major plates: Children's wear Master brand And One way will continue to sell well in the second quarter in the three quarter of this year. The retail sales in the third quarter of the 31st degree main brand product (calculated at retail value) increased year by year, while the retail sales of the 31st degree children's clothing brand in the third quarter (at retail value) also achieved a high single digit year-on-year growth. One way, because last year's base was relatively small, grew rapidly, and achieved double-digit growth compared to the same period last year.

Management said that the company's main business status has not changed significantly. Children's wear will be held in September, and the children's order will be very good. Overall data comparison, the second quarter of 2017 compared to the same period in 2016, the order growth rate of about 25%, mainly from clothing driven.

In terms of industry, management indicated that the sports industry has a good prospect in the whole country. The income of sports industry during the national day and Mid Autumn Festival has increased considerably. National policy also advocates building a powerful sports country. The third quarter is relatively low in the industry, so 361 is still very high. Overall, 361 of the operations are very benign, exceeding our expectations.

Q & a part

Q1: the growth of children's clothing orders in the two quarter is low double-digit growth, but the retail sales growth is a high number of units. The main brands have the same situation. What's the difference between them?

Answer: Children's clothing orders are wholesale prices, and can not be directly compared with the channel. The price in the retail channel is the actual price after the discount.

Q2: May I ask why the 2018 quarter children's wear increased by 25% in the two quarter?

Answer: Children's wear industry is more dispersed in China, and 361 of children's wear in sports industry is outstanding. The company has a sales network of nearly 1700 stores throughout the country. The proportion of children's clothing in the second tier cities is larger than that in adult clothing. Secondly, since China loosened the policy of restricting the second child in 2015, it can be predicted that sales will increase and benefit from larger demographic dividends, and the quality of the 361 products will also be ranked higher in the industry.

Q3: can you tell us about the retail structure and warehouse sales ratio for the next two or three quarters?

A: since the two quarter, these data are no longer released. The main reason is to maintain a unified standard with the industry, so the form of operation summary report has been improved. Library sales ratio is relatively healthy, although it can not tell the actual data, but it is definitely less than 5. The number of stores will be disclosed in the annual report. Children's wear sales increased by 13% in the first half of the year, accounting for about 11%. We are confident that the data will be maintained at the end of the year.

Q4: sales of shoes and sales of shoes and other accessories from September to October.

Answer: shoes are not as tall as clothes. Clothing accounted for about 50%, shoes and other accessories accounted for about 40%. The growth of clothing sales is greater than that of shoes. July -9 month sales of the three major plates are good, you can refer to the three quarter report. Data for October have not yet been obtained.

Q5:'s performance growth in the first half of this year is mainly due to the reduction of advertising expenses. Will the second half maintain this situation?

A: it is expected that the advertising cost in the second half of the year will be almost the same as that in the first half of the year. It will probably account for a sales ratio of 8%-10%, and the advertising contract has basically been signed, so it is expected that there will not be much growth.

Can Q6: introduce the performance of the three quarter of the electricity supplier?

A: in the three quarter, only the performance statistics of terminals were available. At the end of August last year, the acquisition of electricity providers was relatively small, and the proportion of e-commerce sales was relatively small. The trend of the fourth quarter will not change much before. We hope that in the next two to three years, the sales revenue will account for 20%-30% of total sales.

Q7: has won the sponsorship of the Winter Olympic Games some time ago, and wants to ask 361 what opportunities can be grasped besides the Winter Olympics, and the new products will be launched after One way.

A: there is no accurate news about which manufacturer has won the sponsorship of the Winter Olympic Games. 361 is not a very professional skiing product provider, but the Winter Olympics in 2020 can still give 361 lots of operational opportunities, such as stars, national team costumes and so on. One way is relatively small, but the skiing series products are relatively advanced, and will do something with the 361.

Q8: overall store area is still growing trend?

Answer: the average area of shops is still an increasing trend. 361 of shops have been doing some core scheduling, putting store sales in the first place and encouraging big stores, so although the number of shops has decreased, the area has been increasing. In the first half of the year, 244 new businesses were opened, with an average area of 1 to 2 square meters per store.

When will Q9: One way start to make profits? What are the strategies of branding?

A: One way is expected to start profitable next year. This year is still laying the groundwork, so the loss is understandable. Brand promotion is carried out through professional teams. There are many TV advertisements that increase exposure. One way also sponsored the national team of Sun Nan and the Winter Olympic Games, as well as the Chinese ski team, and has relevant news reports in CCTV.

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