500 Million Months Ahead Of The Net Shop, 2400 Chinese Version Of ZARA

La Natsu Bell accumulated many years of extensive development problems, and finally concentrated on the outbreak.

The latest performance forecast shows that in the first half of this year, the company closed more than 2400 stores, and its revenue fell by more than 20% compared to the same period last year, with an estimated loss of 440 million -5.4 billion yuan.

Since 2018, xingjiaxing has led La Natsu Bell to try to reverse the danger by lowering inventory, closing stores and going straight battalion.

But it is not easy for a clothing company that has over 9000 stores and over 10 billion revenue annually.

　 Performance slump

Once the deficit gate is opened, it will become unmanageable.

In 2018, La Natsu Bell (603157.SH) ushered in the first loss after its listing. The net profit of the net profit for the whole year was 160 million yuan, and this trend is further expanding.

According to the performance forecast, the company expects to lose 440 million yuan to 540 million yuan in the first half of this year, down by 364.5% to 418.5% over the same period last year.

La Natsu Bell, founder and real controller of xingjiaxing clothing sales, has always regarded himself as a disciple of ZARA. He is determined to turn La Natsu Bell into "ZARA of China".

Xing Jiaxing's pursuit of scale was almost crazy. Especially after the listing of Hong Kong stocks and A shares in 2014 and 2017 respectively, more than 2 billion of the funds were invested in the expansion of the stores. In the traditional clothing industry, Xing Jiaxing's masterpiece is not brilliant. "La Natsu Bell"

The company's main battalion mode has been well implemented during the period of rapid expansion.

Data show that the number of stores has increased rapidly from more than 1800 in 2012 to more than 9400 in 2017, reaching its peak. The brand camp has also expanded from the past 3 to more than 20, covering women's wear, men's wear and children's wear.

Correspondingly, the company's revenue scale increased from 2 billion 910 million yuan to 9 billion yuan, and exceeded 10 billion yuan in 2018.

However, the company's performance did not increase significantly with the doubling of revenue, or even the first loss in 2018.

In the half year performance notice, the company said that due to the continued downturn in the domestic retail market, the company took the initiative to optimize its channel structure. It is expected that revenue in the first half of this year will drop by more than 20%.

　 Speed up shop closure

The loss in 2018, La Natsu Bell poured cold water, when the company opened shop slowed down significantly, while increasing the intensity of the shop, the number of stores for the first time negative growth.

In the first year of this year, the company further increased its closing speed. In the first quarter, the total number of stores closed to 1851, with 235 new outlets and 1616 closed stores.

Zebra consumption noted that almost all of the brands were closely related to the store, and the most closed one was La Natsu Bell's main store.

A quarterly disclosure, by customs shop and other factors, the company's all men's wear, women's clothing income has declined sharply, only children's clothing has increased to a certain extent. But the company's children's clothing business is just beginning, and it is not enough to shoulder the heavy responsibility of stabilizing the overall situation.

The shop is still on. According to the performance forecast, in the first half of this year, the number of stores within the company decreased by more than 2400 compared with the end of 2018.

The company said it was a contractive strategy based on the market situation to focus on high value business.

Strategic adjustment

Because of the pursuit of scale in recent years, the inventory problem of clothing enterprises has gradually become an obstacle for La Natsu Bell.

In 2014 -2018, the stock of the company increased rapidly from 1 billion 327 million yuan to 2 billion 534 million yuan, while the share of current stock rose from 26.42% to 48.58%.

As of the end of the first quarter of this year, the company's inventory is still up to 2 billion 193 million yuan, accounting for 50% of current assets.

In the general market downturn of the apparel retailing industry, the company has increased the intensity of the discount and the sale of the goods for the season to maintain the scale of its revenue.

This directly led to a decline in gross margin. In 2018, the average gross profit margin dropped from 67.73% last year to 65.33%.

In the first half of this year, the company continued to increase sales and handling of off season goods, and the gross profit margin was further reduced.

In 2018, La Natsu Bell made a deep reflection on the past development strategy. The decline in performance fully exposed the company's inadequate preparation and response to the changes in the external market environment, and for the first time put forward the urgent need to adjust the mode of "multi brand and full direct operation".

Since the second half of last year, the company has gradually launched its affiliation and joint venture mode on the basis of past direct operations. It has indicated that it is necessary to accelerate the channel transformation in 2019, and hopes to completely transform the existing sales channels within 1-2 years, so that the proportion of affiliation and joint venture will reach 50%.

On the investment front, La Natsu Bell is also selectively shrinking. In May of this year, the company held a 54.05% stake in Hangzhou's Agel Ecommerce Ltd, which was transferred to 200 million yuan. The acquisition of the electricity supplier company in 2015, which owns seven grid and other e-commerce clothing brands, once assumed the responsibility of introducing La Natsu Bell's products into the online industry.

In June, La Natsu Bell's wholly owned subsidiary, lac management company, held a 98.04% share of the Tianjin star wide enterprise management consulting partnership (limited partnership), with a consideration of 275 million yuan. Since its establishment in 2015, the partnership has invested mainly in pharmaceutical, consumer and new energy industries.

The company said that the transfer would help to improve the company's internal asset structure and provide financial support for the main business development. It is expected to contribute a net profit of 29 million yuan to the company.