Seven Wolves Are Hard To Save "Lord Buddha". Karl Lagerfeld Lost About 40000000 Last Year.

It has been almost two years since the seven wolves bought the French luxury brand Karl Lagerfeld Greater China Development Limited, but the latter is still losing money.

The 2018 fiscal year results released by the seven wolves in April 4th showed that the Karl Lagerfeld Greater China Development Limited's revenue during the period was about 31 million 390 thousand yuan, but it eventually lost about 40 million 140 thousand yuan.

This once again left the regrets to the seven wolves. The Chinese parent company still failed to reverse the embarrassing situation of Karl Lagerfeld's continued losses.

The seven wolves must speed up. As the fashion heavyweight Karl Lagerfeld died in February, his brand of the same name may have lost the best time to open the market.

Although Karl Lagerfeld was sold by Lord Buddha in the early 2005, strictly speaking, he had no design level relationship with him, but there was still a celebrity aura that could not be ignored.

After the death of Lord Buddha, many brands of Karl Lagerfeld shops in China were erected at the door.

At first, the seven wolves spent 320 million yuan on the acquisition of 80.1% stake in Karl Lagerfeld Greater China Development Limited from Hongkong entrepreneur Cao Qifeng. On the one hand, they wanted to use the gold lettered signboard of the old Buddha to move closer to the international corporate image. On the other hand, they were to enrich their brand portfolio and close to the goal of the seven wolf fashion group.

This is indeed a brave choice, because Karl Lagerfeld has always been a hot potato.

Not only did it withdraw from the US market in the spring of 2006, but it lost about 60000000 in second years after entering China in 2013.

Until now, Chinese consumers' recognition of the brand is still low.

The seven wolves themselves faced difficulties at that time, and net profits continued to decline after 2012 until 2017.

In the 2018 fiscal year, the performance of the seven wolves was larger than that of each quarter, but benefited from the strong growth in the fourth quarter.

Operating income increased by 14% to 3 billion 517 million yuan over the same period. Net profit attributable to shareholders of listed companies was about 346 million yuan, an increase of 9% over the same period last year.

Moreover, online turnover exceeded 1 billion 400 million yuan, an increase of 10% over the same period last year.

The main reason for the seven wolves to improve their performance is summed up as "increased inventory clean-up efforts, while costs have declined", "electricity supplier and needle spinning business grew faster during the reporting period, and the main brand was warmer in the context of a weak recovery of the entire demand environment".

At the same time, it also strengthened the operation of e-commerce channels, and online performance increased at a faster rate.

These are the seven wolves pformation strategy, in a series of Chinese old brand pformation and upgrading, its effect is not slow.

The acquisition of Karl Lagerfeld Greater China Development Limited is an important part of investment and rich brand portfolio.

Seven wolves also incubated the light luxury brand WOLF TOTEM (wolves totem) in 2013, and bought the French Boomer men's 16N in 2016.

Only these relatively new brands have not yet made great contributions to the performance of the seven wolves. The current role is still in the synergy effect of brand image.

The seven wolves now regard these brands as "new brands in the start-up stage".

Therefore, in their earnings reports, their development planning is also a groundbreaking measure to enhance operational capability, optimize supply chain and enhance product design.

In the future, the seven wolves may also have new moves on the investment and acquisition business.

The company mentioned in its earnings report that it is investigating and evaluating several high quality fashion clothes, outdoor sports, children's wear and accessories.

We will continue to explore investment opportunities in the field of big fashion.