La Natsu Bell'S Net Profit In 2018 Dropped By 100% Over The Same Period, And Competition Will Intensify.

In March 22nd, La Natsu Bell issued a performance bulletin, which showed that the operating income in 2018 was 10 million 175 thousand and 900 yuan, an increase of 13.08% over the same period last year, and the net profit attributable to shareholders of listed companies was 155 thousand and 800 yuan, down 131.24% from the same period last year.

It is noteworthy that in the 2018 year, La Natsu Bell suffered a net profit loss for the first time, and the net profit decreased substantially compared to the same period last year, mainly due to a decrease of 427 million yuan in the gross profit margin and a decrease of 6.04% over the same period, of which the gross profit was reduced by 182 million yuan due to the decrease in operating income.

The La Natsu Bell brand was founded in 1998. It mainly designs and sells clothing for urban women. We can see the shops of La Natsu Bell all over the country. While expanding the scope of operation, La Natsu Bell is also facing enormous problems.

Although La Natsu Bell's performance is not ideal, but still can not stop the number of entities under the crazy expansion line.

In 2015, the number of physical stores in La Natsu Bell was more than 7800, and it had expanded to more than 9600 in 2018.

Affected by the slowdown in consumption and the drop in the flow of stores, the sales of La Natsu Bell outlets in the second half of 2018 were lower than expected. The three and fourth quarter income decreased by 7% and 6% respectively. In addition, the revenue of department store counters continued to decline. In 2018, the sales volume of La Natsu Bell Cen's goods counters was 4 billion 893 million yuan, down 369 million yuan compared with the same period last year, the decrease was 7.02%, and the proportion of total income decreased from 50.38% to 48.08%.

La Natsu Bell accelerated the terminal adjustment process in the second half of the year, closed down the loss and inefficient stores, and launched a joint, franchise and trust cooperation mode. As of December 31, 2018, the number of Direct stores in La Natsu Bell was 9269, a 179 decrease from the beginning of this year.

Dot expansion led to a sharp increase in La Natsu Bell's stock, and for women's clothing industry, the trend of change is fast. Too much inventory is a big burden for La Natsu Bell.

As of the end of September 2018, La Natsu Bell's inventory amounted to 2 billion 700 million yuan, accounting for 32.46% of total assets.

This figure increased by nearly 1 billion yuan compared with 1 billion 756 million at the end of 2015.

Although La Natsu Bell never mentioned the problem of brand sinking, his A share was 4 billion 700 million, and the total market value of Hong Kong stocks less than 3 billion Hong Kong dollars failed to reach the expansion target of quality and quantity.

The result is to expand the number of stores, and move the shops away from the traditional department stores with less traffic volume into the shopping center, or even the supermarket stalls.

However, forced to sink the channel not only La Natsu Bell, H&M, ZARA and other international fast fading brands have begun to try to sink the channel, La Natsu Bell will face more intense market competition.

As of February 28, 2019, La Natsu Bell Hong Kong shares closed at HK $4.900, down 77% from its HK $21.300 issue price.

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