La Natsu Bell 2019Q1 Store Closed More Than 1000, Net Profit Continued To Plummet Year On Year.

Recently, the domestic women's clothing brand La Natsu Bell released the first quarter earnings in 2019. La Natsu Bell achieved a revenue of 2 billion 372 million yuan in the reporting period, a decrease of 6.94% compared with 2 billion 548 million yuan in 2018, and a net profit attributable to shareholders of listed companies was 9 million 751 thousand yuan, down 94.4% from 2018's 174 million yuan.

In 2018 Q2-2019 Q1, La Natsu Bell net profit fell sharply for the 4 consecutive quarter, and even in 2018, there was a loss in Q4.

According to the report, La Natsu Bell began to disclose financial data in accordance with the new income criteria in 2019. It is understood that the new revenue standard refers to the company's customers are terminal consumers, rather than department stores and e-commerce platform, the company as the main responsible person, according to the total price of the terminal consumers to pay the total price is recognized as revenue, the department store and electronic business platform as a deduction for the cost. The report indicates that the operating income, unless otherwise specified, is the operating income of the new revenue criteria.

For comparability, La Natsu Bell listed the first quarter of 2018 revenue in accordance with the old and new income standards.

In the quarter, La Natsu Bell's revenue declined by 21.11%. The reasons for the decline in revenue were reported as follows: first, the adjustment process of La Natsu Bell under the accelerating line, closing the loss and inefficient Direct stores to reduce the ineffective investment of resources. As of March 2019, the number of outlets in La Natsu Bell stores was 7653, and the net decrease of 1887 in 2018 compared with the same period in 2018, a decrease of 19.78%.

Second, the report mentioned that the lack of consumer confidence and the overall growth of clothing consumption were not significantly improved compared with the second half of 2018. According to the National Bureau of statistics, in the first quarter of 2019, the total retail sales of footwear and clothing in the whole country increased by 3.3% over the same period last year, down 5 percentage points from the same period of the total retail sales of consumer goods, while the per capita clothing consumption expenditure rose by only 1.7% in the first quarter of 2019, the lowest growth rate in all consumer spending categories. The proportion of clothing consumption per capita consumption expenditure dropped to 8.1% from 8.6% in the first quarter of last year. The Spring Festival date in 2019 is 11 days earlier than that in 2018, which has some adverse effects on the sales of winter products in the first quarter.

In addition, La Natsu Bell's main women's clothing brands La Chapelle, Puella, 7 Modifier and La Babit were affected by the number of direct store outlets, the decline of terminal passenger flow and the increase in the proportion of over season sales, and the first quarter income decreased by 26.65%, 29.76%, 22.91% and 23.06%, respectively.

In the first quarter of 2019, La Natsu Bell realized a net profit of 9 million 751 thousand yuan attributable to shareholders of listed companies, a decline of 94.4% over the same period last year. The report pointed out that the main reason leading to the decrease in net profit during the reporting period was the decrease of 604 million yuan in the first quarter compared with the same period last year. The decrease in gross profit by 421 million yuan was due to a decrease of 21.11% in operating income. As a result, the gross profit margin dropped by 7.72 percentage points, resulting in a reduction of 183 million yuan in gross profit. At the same time, the sales cost decreased by 322 million yuan due to the decrease in sales. After considering the above factors, the impact on the company's current net profit was about 211 million yuan.

For the 2019 interim results, La Natsu Bell also indirectly pointed out that the actual effect of the measures based on its current sales and the year-on-year decline in gross profit, as well as the practical effects of such measures as business transformation, adjustment, reduction of capital and efficiency, will take some time to reflect gradually. Therefore, the decline in net profit attributable to shareholders of Listed Companies in 2019 of 1-6 may exceed 50% in 2019.