Ulifestyle Shenzhen Excellent Shop Closed Parent Company La Natsu Bell To Sell Assets?

Local fast fashion brands are struggling.

Following the TOPSHOP, New Look and Forever 21, La Natsu Bell (603157.SH)'s fast fashion brand UlifeStyle is also facing an embarrassing situation of one shop. The company said it has taken the initiative to reduce the number of UlifeStyle business outlets and reduce the scale of its business.

In fact, not only is the fast fashion brand, but the whole La Natsu Bell Du has a crisis. From the beginning of the performance to the loss, La Natsu Bell spent only three years, and the first quarter of 2019 continued to lose money. In the past two months, La Natsu Bell has increased the speed of selling assets.

　 UlifeStyle closes another shop. There are only 105 left in the country.

Recently, when the reporter visited Shenzhen's excellent shopping mall, he found that the UlifeStyle on the first floor in the North District was being withdrawn from the store. Near the transparent sliding door, there was a billboard of SUMMER SALE, which was as low as 42% off. The clothes in the shop had been packed into boxes, and the clothes rack and models had been moved away. A store staff told reporters, "we (clothing) shop is closed, the shop may become a restaurant in the future."

UlifeStyle is the local fast fashion brand launched by La Natsu Bell in 2015. It is reported that in August 26, 2016, UlifeStyle Shenzhen outstanding store opened, the business area of about 200 square meters, less than three years, the store experienced a small loss to the middle deficit, in a timely manner before the loss. In sharp contrast, Zhuo Yue Hui has become increasingly prosperous, with sales volume of 1 billion 400 million yuan in 2018, an increase of 14.3% over the same period, and a 22 million breakthrough in passenger traffic.

The decline period of UlifeStyle's life is too fast. According to the results of the report, at the end of 2015, there were 99 retail outlets in UlifeStyle. At the end of 2016, it reached its peak, that is, 191 retail outlets. However, after radical horse racing, UlifeStyle began to go downhill, 152 at the end of 2017, and by the end of 2018, there were only 105 households in the retail outlets of UlifeStyle. La Natsu Bell said that in 2018, the company voluntarily reduced the number of UlifeStyle outlets and reduced the scale of business. Revenue is also the case. In the peak period of 2016, UlifeStyle achieved 458 million yuan in revenue and 66.92% in gross profit margin. In 2018, revenue dropped to 365 million yuan, down 30.17% compared with the same period last year, and the gross margin was 53.19%, which was 7.92% lower than that in 2017.

In fact, fast fashion brands have closed or withdrawn from the local market has become the norm in recent years. In August 2018, TOPSHOP announced that it would terminate its cooperation with China's franchise partners, and then close Tmall flagship store. In December 2018, New Look announced its closure of Chinese shops and Tmall flagship stores in its official WeChat public, official micro-blog and Tmall flagship stores. In April 29, 2019, Forever 21 announced that it would suspend its official website from April 29th, and consumers could handle merchandise returns before May 30th. The announcement of this announcement has also led to speculation that Forever21 will withdraw from China.

"UlifeStyle lacks packaging for itself, and this part of the marketing strategy is having problems. For example, ONLY, VERO MODA, they had a low tide in 2015, and then they turned the corner on the road. They sold simultaneously on line and offline. There would be no looting of customer resources. UNIQLO's joint T-shirt KAWS could lead people to run wild, and he would advertise on all kinds of social platforms such as micro-blog, know, WeChat and so on. UlifeStyle may decide to invest 5000 yuan to do a promotional campaign now, but in fact, because of being late, it has lost more than ten million turnover and can not catch up. A person close to UlifeStyle gave an example to reporters.

Is performance loss guaranteed by selling assets?

UlifeStyle is just a microcosm of La Natsu Bell.

According to the financial report, in the first quarter of 2019, La Natsu Bell realized operating income of 2 billion 372 million yuan, down 6.94% compared to the same period last year. Net profit after deducting the net profit was -0.39 billion, compared with 133 million yuan in the same period last year.

In the face of the loss performance, La Natsu Bell said that the company accelerated the adjustment process under the offline channel, closed down the loss and inefficient Direct stores to reduce the ineffective investment of resources, as of the end of March 2019, the number of outlets was 7653, a net decrease of 1887 compared to the end of March 2018, and the number of outlets decreased by 19.78%. At the same time, the main women's clothing brands La Chapelle, Puella, 7 Modifier and La Babit were affected by the number of Direct stores, the decline of terminal passenger flow and the increase in the proportion of over season goods sales. The first quarter income decreased by 26.65%, 29.76%, 22.91% and 23.06%, respectively.

"In fact, women's wear began to be bad in 2016, but later it was split up, strong Heng Qiang, such as Five plus, and the weak gradually eliminated, and survival is particularly important." A middle end women's clothing brand store manager told reporters.

La Natsu Bell's performance also appeared in 2016. In 2016 -2018, La Natsu Bell's operating income was 8 billion 551 million yuan, 8 billion 999 million yuan and 10 billion 176 million yuan respectively, while the growth rate was 14.95%, 5.24%, and 13.08% respectively during the same period. However, the net profit increased by 14.95% yuan, 380 million yuan and -2.45 billion yuan.

It was hard to get to the market, and the result was a loss in second years. La Natsu Bell said that in addition to the decline in sales and the decline in gross margin, the total sales cost, management cost and financial cost increased by 381 million yuan compared with the same period last year. Some investment enterprises in the current period were still in the stage of brand cultivation and investment, and the investment income decreased by 52 million yuan over the same period last year.

One side is bad performance, the other is La Natsu Bell selling assets. In June 22, 2019, the La Natsu Bell announcement showed that its wholly owned subsidiary, Shanghai's La Xia Management Co., Ltd. intends to transfer the 98.04% share of the Tianjin star wide enterprise management consulting partnership (hereinafter referred to as the "target fund"), with a transaction consideration of 275 million yuan.

Among them, Suzhou Su Xiu Wenchang investment partnership (hereinafter referred to as "Su Xiu Wenchang") will share the 80.21% share of the 225 million yuan transferee fund; the Suzhou Industrial Park yuan he investment equity investment fund partnership (hereinafter referred to as "yuan he merchants") will share the 17.83% share of the 50 million Yuan transferee target fund.

By the end of 2018, Su Xiu's total assets in Wenchang were 1 billion 347 million yuan, and its net assets were 1 billion 326 million yuan; in 2018, its operating income was 109 million yuan, and its net profit was 86 million yuan. Yuan he merchants total assets of 3 billion 509 million yuan, net assets of 3 billion 509 million yuan; in 2018, yuan he investment business income of 99 million yuan, net profit of 89 million yuan.

Prior to the sale of the above target funds, La Natsu Bell said in May 8, 2019 that he intends to transfer his 54.05% stake in Hangzhou's Agel Ecommerce Ltd involving 200 million yuan to the associated party Hangzhou Yan Er enterprise management consulting company, accounting for 5.80% of the net assets attributable to shareholders of Listed Companies in 2018. Hangzhou was founded in January 2010. It mainly sold and sold seven online clothing brands such as GE, OTHERMIX and OTHERCRAZY. Its net profit in 2017 and 2018 was 143 million yuan and 64 million yuan respectively.