La Natsu Bell, Who Has A Net Profit Or 459 Million Reduction In 2018, Should Turn Over Quickly With Four Strokes.

Shanghai La Natsu Bell clothing Limited by Share Ltd (hereinafter referred to as "La Natsu Bell") was released on the evening of January 30th, the annual performance pre reduction notice in 2018. From January 1, 2018 to December 31st, after preliminary calculation by the financial department, it is estimated that the net profit attributable to the shareholders of Listed Companies in 2018 is reduced by around 459 million yuan over the 2017 year (RMB, the same below), a decrease of about 91.98% compared with the same period last year. The net profit excluding the non recurring gains and losses attributable to the shareholders of the listed company is reduced by 415 million yuan over the 2017 year, down about 109.21% from the same period last year.

In the same period last year, the net profit attributable to shareholders of listed companies was 499 million yuan; the net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 380 million yuan; earnings per share were 0.98 yuan.

The announcement said that the main performance reduction was mainly affected by the decline in terminal retail sales. In the second half of 2018, the sales of direct sales in the company were not expected, which resulted in a year-on-year decline of about 5% of the gross profit of the company.

In addition, a series of measures taken by the company to enhance product strength, optimize retail channels and improve single store sales can not be directly and fully reflected in 2018.

Because of the adjustment of department stores and the decline of passenger flow, the sales of women's clothing brands Lachapelle and Puella, which accounted for a relatively high proportion of department store counters, fell by more than 10% in 2018, while the sales growth of women's brand Candies and children's wear and men's wear brands still can't make up for the decline of Lachapelle and Puella.

In addition, some brands of investment and cooperation are still in the initial stage of cultivation and development, and have invested heavily in product development, channel development and market promotion, resulting in a decrease of some 90 million yuan in investment income of some investment holding subsidiaries.

In order to prevent declining performance, La Natsu Bell also formulated the main countermeasures:

1, enhance product competitiveness and strengthen brand operation and management capability with core responsibility system as the core.

In the second half of 2018, the company further defined the differentiated positioning of different brands, expanded the product development models of various brands, strengthened the effective management of product lifecycle process, reduced the quantity of the first order purchase, and took the sales and investment return as the core KPI indicators for the examination of the category leaders.

2, adhere to flat sales management, improve the fine service and operation management capabilities.

The company has completed the comprehensive combing of the national stores, and combined with the information of store property, store layout, competitive sales, etc., has analyzed the specific problems existing in every store of the company, made clear the performance improvement goals and improved key items, and implemented the three level sales management level system of "regional head, sales manager / Supervisor - store manager", so as to ensure the responsibility to people and check in place.

3, tap the potential, continue to reduce costs and increase efficiency, improve asset turnover and capital use efficiency.

On the basis of careful analysis of the large amount of cost and expenditure and the inventory status of the seasonal products, the company focuses on the purchase of goods and materials, the decoration of the stores, and the sale of the seasonal products.

4, set up a cloud Center for members to improve the whole channel marketing management system with the core of consumer demand.

The company set up a special team to upgrade and pform the existing information system, to integrate the online and offline operational data and membership system around the whole social interaction experience of consumers, and to enhance the sales conversion rate and the proportion of members repurchase.

Public information shows that La Natsu Bell was founded in 1998 and listed on A shares in 2017. It is a fast fashion, multi brand and all direct fashion group located in the mass consumer market. The company currently owns LaChapelle, Puella, Candie 's, 7m, POTE, OTHERMIX and so on, and there are many popular fashion brands which are complementary to each other, and the customers are interwoven. The products include T-shirts, coats, shirts, skirts, knitwear, trousers, etc., covering the market demand of women's clothing in all directions, and gradually extending the product line to men's wear and children's wear products to fill the market gap.

According to the results of the report, La Natsu Bell benefited from the growth of monopoly channels and online revenue. In 2017, the total operating income of the company was 8 billion 999 million yuan in the year of 2017, an increase of 5.24% compared with the same period last year. Due to the superposition of multiple adjustment factors such as the adjustment of the department store channel, the loss of new brands, and the change in the proportion of accounts receivable, the net profit of shareholders attributable to the listed companies was 499 million yuan, a decrease of 6.29% compared with the same period last year. The net profit after deduction was 380 million yuan, a decrease of 19.53% compared with the same period last year, and the earnings per share were 0.98 yuan.

Among them, the fourth quarter achieved operating income of 2 billion 767 million yuan in the single quarter, an increase of 0.04% over the same period last year. The net profit attributable to shareholders of listed companies was 159 million yuan, an increase of 23.24% compared with the same period last year, and the fourth quarter profit growth rebounded significantly.

The industry has previously said that La Natsu Bell has multiple brands, which complement each other in target consumer groups, brand positioning and product design, and deeply cover differentiated market segments.

According to sub brands, LaChapelle achieved 2 billion 228 million yuan in 2017, a decrease of 1.05% compared with the same period last year. Puella was affected by factors such as slow growth of new stores and declining year-on-year sales, and achieved a profit of 1 billion 833 million yuan, down 10.03% from the same period last year. The proportion of two core brands of LaChapelle and Puella reached 45.12%.

7m and LaBabit Ye brands achieved revenues of 1 billion 489 million yuan and 1 billion 321 million yuan respectively, and their revenues continued to grow. Especially, the LaBabit Yi brand had a significant increase of 27.96% over the same period last year due to the expansion of the channel and the optimization of the structure of goods.

The company's five largest women's clothing brand revenue totaled 7 billion 446 million yuan, an increase of 3.1% over the same period, accounting for 82.74%.

In addition, the company's men's wear, children's wear and investment cooperation brands have maintained steady income.

Menswear brand (JACKWALK, Pote, MARCECK) achieved 523 million yuan, an increase of 19.10% over the same period, accounting for an increase of 0.7PCT to 5.8%. UlifeStyle brand revenue decreased by 1.86%, mainly due to the decrease in the number of stores.

Lv Ming, an analyst at Tianfeng securities, believes that the strategy of multi brand + multi category makes La Natsu Bell's brand and products have differentiated advantages, which helps companies break through the limitations of single brand in terms of product style and clothing scene, meet the needs of more customers, and help create one-stop consumer services to enhance customer stickiness, thereby enhancing the overall market size and penetration of the company.

From the market share, La Natsu Bell's brand market share increased from 0.8% in 2008 to 0.9% in 2016. In 2017, the share of the company's market dropped slightly to 0.8%. From the women's clothing market, the market share rose from 2008 to 1.5% in 2017, and the market share of the company increased year by year. The market share of 2017 city declined slightly, and the department stores accounted for a relatively large proportion. In recent years, due to the aging of department stores and the loss of customers, the sales of the company in the channel adjustment process had been affected.

The executives from La Natsu Bell said before that, compared with 2017, the basic trend of 2018 consumer spending is continuing. But when it comes to the same store sales situation, the situation of different stores is different. La Natsu Bell's same store situation in 2017 is relatively stable. However, due to the large volume of the company, the large number of shops, the large number of personnel, and the long launch time of the brand, it is more difficult to break through the bottleneck in the short term.