Naf Naf SAS? Rapid Expansion Brings Store Closing Trend

In May 22nd, the La Natsu Bell clothing Limited by Share Ltd of Shanghai (hereinafter referred to as "La Natsu Bell") issued a notice on the project financing of wholly owned subsidiaries and the guarantee provided by the company.

Through the acquisition of LACHA APPAREL II S RL 60% stake, the group will indirectly get the French clothing brand (thematic reading) Naf Naf's remaining 60% stake in the paction is about to be completed, Naf Naf will become La Natsu Bell's Affiliated Companies.

At the end of June last year, La Natsu Bell bought the Naf Naf 40% stake from VIVARTE SAS with 20 million 800 thousand euros.

It is reported that LaCha Fashion is an investment platform set up by La Natsu Bell in Hongkong, mainly undertaking foreign investment business. Its net profit in 2018 was -750.04 million yuan.

LaCha Apparel is an equity investment company with a net profit of -6.82 euro in 2018.

Naf Naf SAS is a French clothing company. Its main business is apparel retailing, with net profit of -484.9 million in 2018.

La Natsu Bell's Naf Naf is also in line with the style of La Natsu Bell's young women's dress. Its products are loved by female consumers aged 25 to 30 years in a concise and lively design style. They have 494 retail outlets in France, Italy, Spain and Belgium.

According to La Natsu Bell's first quarterly performance report in 2019, La Natsu Bell achieved 2 billion 372 million yuan in revenue during the period, a decrease of 6.94% in 2018 compared with 2 billion 548 million yuan in 2018, and a net profit of 9 million 751 thousand yuan attributable to shareholders of listed companies, a decrease of 94.4% over last year.

After listing in September 2017, La Natsu Bell began to rely heavily on financing to expand rapidly. As of December 31, 2018, the number of stores was as high as 9269.

The surge in stores did not generate high income for La Natsu Bell.

La Natsu Bell's business income (gross law) was 10 billion 176 million yuan in 2018, down 2.58% from the same period in 2017, and net profit of -1.60 billion yuan, down 132% from the same period last year.

Rapid expansion and steep decline of performance will inevitably exacerbate financial pressure.

According to public data, Naf Naf lost 7 million 700 thousand euros in the fiscal year ending August 31, 2016, and net profit of 100 thousand euros in the fiscal year ended August 31, 2017.

In the next period of time, the market pressure of clothing enterprises, especially the women's clothing industry companies, is still larger.

National Bureau of statistics data show that in the first three months of 2019, the growth of clothing and footwear products in the consumption of residents was only 3.3%, and the overall growth rate of the travel agencies and consumers was up to 500 basis points.

In the past two years, the women's clothing industry has been weaker than the sports market in the consumer market.

Along with the changing market of garment industry and the change of comprehensive environment such as consumption upgrading and retail environment.

The domestic women's clothing industry has undergone intense changes in the past ten years, and almost every few years there will be a "pattern reorganization".