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    Skech Denied That It Was Still Difficult For The Group To Acquire The Chinese Market.

    2019/1/25 8:34:00 17

    SkechChina Market

    Prior to the LEE parent company's rich group's intention to acquire Cage's news, in January 21st, the Beijing Commercial Daily reporter gave an exclusive confirmation to the relevant person in charge of Skech, and the other side denied the news.

    In January 17th, it was reported that Skech and VW group had pre negotiated negotiations to buy Skech at a price of $40 per share, a total price of $6 billion 500 million, and a premium of over 48%.

    In response, Cage, responsible person in the response, said the news was not true, but in any case, it would not affect the operation of Skech China.

    In response, He Junfeng, founder of O2O business school, said that rumors of Cage's acquisition of the rich group were not groundless.

    In the long run, how to integrate is the key factor that affects both sides.

    This includes not only team integration, but also product gene, company culture and channel development.

    As for whether the two sides had previous business intercourse, Skech, the relevant responsible person, replied exclusively to the Beijing Commercial Daily reporter, "no".

    It is reported that Cage was founded in California in 1992, and is now the second largest footwear brand in the US market after Nike.

    Although Skech's global performance remains strong, Cage's net profit has begun to show signs of weakness at the end of 2017.

    Data show that as of the end of 2017 fiscal year, Cage's revenue reached $4 billion 164 million, an increase of 16.86% over the same period, net profit of 179 million yuan, down 26.41% over the same period last year.

    At the end of 2016, Cage's revenue was $3 billion 563 million, up 13.22% compared to the same period last year, and net profit from mother to company rose 4.99% to 243 million dollars.

    In the 2012-2014 years, Cage's net profit growth rate has remained at three digits.

    "It can be seen that Skech's growth in global business has met with bottlenecks, which is also one of the reasons why Cage has been bought by the group.

    One insider, who declined to be named, said that this is also related to the recent split of the business of the group.

    As a matter of fact, the group has restructured its business because of some weak business growth.

    According to the two quarter earnings report announced in October this year, the two brands of Vans and The North Face gained 26% and 5% growth respectively; the income of three brands of Timberland, Wrangler and Lee fell 2%, 5% and 9% respectively.

    In response, Steve Rendle, chairman and chief executive of Wei Fu Group, stressed that the group at the present stage is at a critical stage of pformation.

    In December 2018, Wei Fu group separated the denim business and named the independent company Kontoor Brands, Inc.

    Cheng Weixiong, general manager of textile and clothing management expert and Shanghai Liang Qi Brand Management Co., Ltd., Skech's product positioning in the domestic market is still vague, and there is a certain gap between Skech and Nike, Adidas, Arthur and other brands.

    For Wei Fu Group, acquisitions can enrich the brand matrix, from a capital perspective, or will be conducive to financial statements.

    "For Cage, in view of the revival of the consumer market, Cage's future need to settle down in the Chinese market still needs to meet the market demand and user experience. If there is no more distinctive product coming out in the future, it will still be difficult to develop in the Chinese market."

    Cheng Weixiong further pointed out.

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