What Was The Reason For La Natsu Bell'S Sudden Drop In Profits In 2018?

Recently, the La Natsu Bell clothing Limited by Share Ltd of Shanghai recently released the 2018 annual performance reduction notice. It is estimated that the net profit attributable to shareholders of Listed Companies in 2018 will decrease by 45852.7 million over the same period of 2017, down about 91.98% from the same period last year.

It is estimated that the net profit deducted from non recurring gains and losses of shareholders of Listed Companies in 2018 will be reduced by 41482.3 million yuan over the same period of 2017, a decrease of about 109.21% compared with the same period last year.

Net profit attributable to shareholders of Listed Companies in 2017: 498 million 527 thousand yuan; net profit attributable to shareholders of listed companies excluding non recurring gains and losses: 379 million 823 thousand yuan.

2017 earnings per share: 0.98 yuan.

La Natsu Bell has already included many brands such as La Chapelle, Puella, 7m, La Babit, Candie, s, JACKWALK/Pote, 8em, UlifeStyle, 8em, MTV, MTV, MTV, etc., which covers women's wear, men's wear, children's wear, sports and leisure, home accessories, etc.

In October 9, 2014, La Natsu Bell group's parent company, Shanghai La Natsu Bell dress Limited by Share Ltd, was listed on the main board of Hongkong stock exchange. In September 25, 2017, it was listed on the main board of Shanghai stock exchange and became the first A+H clothing company in China.

The report shows that the main reasons for the pre reduction in 2018 are:

1, mainly affected by the decline in terminal retail sales, sales of direct outlets in the second half of 2018 were not as good as expected, resulting in a year-on-year gross margin drop of 5%.

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.

2, mainly due to the adjustment of department stores and the decline of passenger flow, the sales of women's clothing brands La Chapelle and Puella, which accounted for a relatively high proportion of department store counters, dropped by more than 10% over the same period of last year, while the sales growth of women's clothing brand Candie's and children's wear and men's wear brands could not make up for the decline of La Chapelle and Puella.

3, the main reason is that some brands of company investment and cooperation are still in the initial stage of cultivation and development. Investment in product R & D, channel expansion and market promotion has led to a decrease of some 90 million yuan in investment income of some investment holding subsidiaries.

A series of measures formulated by La Natsu Bell:

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.

In addition, in 2018, La Natsu Bell acquired 100% stake in Naf Naf of French women's clothing, and implemented the more mature management team and business mechanism of La Natsu Bell's multi brand strategy,.Naf Naf SAS, which helped La Natsu Bell's existing brand and Naf Naf SAS take advantage of their respective advantages, sharing resources such as commodity planning, fashion design, blockbuster shooting, marketing, global supply chain management, terminal channel and other resources, forming resource complementarity and business synergy between brands, and enhancing the company's penetration and influence in the international fashion apparel market.

Naf Naf brand sells clothing, bags, accessories and other products specifically designed for women.

Naf Naf SAS sells products in Belgium, the United Kingdom, Spain, Italy and the international network through offline storefront and online channels, which can provide a path for La Natsu Bell's international development; Naf NafSAS's sales mode is mainly composed of Direct stores, joint stores, counter stores, franchisees, franchisees and franchises (and others), which is in line with the company's strategic development direction, which is directly related to La Natsu Bell's current business mode, which is direct operation, joint operation, trusteeship and affiliation.

TFS point of view:

La Natsu Bell's profits plummeted in 2018, and the decline in physical store sales was the main reason. In the second half of 2018, sales of the company's Direct stores did not reach the expected level, resulting in a year-on-year decrease in 5% in the company's gross profit margin.

In view of this, La Natsu Bell will improve the fine service and operation management ability of the store, complete the comprehensive combing of the national stores, and combine with the information of store property, store layout, competitive sale and so on.

In the brand style, there is no obvious difference between the women's clothes located at the middle end, and the consumers seem to have an aesthetic fatigue to La Natsu Bell.

At present, the younger generation of the fashion industry is irreversible. The consumption capacity of the young group is growing rapidly and has great potential.

From channel to product to price and marketing strategy immediate pformation, multi-dimensional circle of young consumers is the top priority.