La Natsu Bell (603157): In The First Half Of The Year, Its Business Income Was 3 Billion 951 Million Yuan, Focusing On The Core Brand.

La Natsu Bell announced that in the 6 months ended June 30, 2019, the company achieved operating income of RMB 3 billion 951 million yuan (the same below), a decrease of 23.2% compared to the same period last year, a gross profit of 2 billion 405 million yuan, a decrease of 31.7% over the same period last year, a net loss attributable to shareholders of the parent company was 498 million yuan, and a profit of 236 million yuan was recorded in the same period. The loss of basic and diluted shares is 0.91 yuan.

The reasons for the year-on-year decline in the reporting period were: the company took the initiative to implement a strategic contraction strategy, continuously optimized the offline channel under the reporting period, and closed down the direct and inefficient retail outlets to reduce the ineffective investment of resources. As at the end of June 2019, the number of retail outlets in the company was 6799, a net decrease of 2470 compared to the end of December 2018, and the number of outlets decreased by 26.65%. The company's main women's clothing brands La Chapelle, Puella, 7 Modifier, La Babit e decreased by more than 20%, due to multiple factors such as the strategic contraction strategy of the company, the slowdown in consumption growth and the decrease in the number of physical stores, and so on. From the point of view of channels, the sales revenue of counters, monopolization and electricity suppliers plummet by 32.8%, 12.9% and 20.8% respectively compared with the same period last year.

The company lost 718 million yuan in the first half of 2019, and the main reason for this loss is: sales gross profit decreased by 1 billion 115 million yuan compared with the same period last year. As a result of the sharp decline in operating income and the accelerated digestion of the goods, the average gross profit margin declined. Although the cost was lower than that in the same period, the decrease in the proportion was significantly smaller than the decline in revenue. The implementation of the new leasing criteria resulted in a net profit reduction of 44 million 610 thousand yuan in the current period. (4) although the company's business transformation and adjustment, the reduction of capital and efficiency were all moving forward, the actual effect still needs a certain time to be gradually reflected, and the reduction in the cost of the period could not offset the impact of gross profit decline.

In the same store sales, the adjustment of market structure has made the department stores and shopping centers continue to be diverted by online platforms, making the sales growth of traditional clothing enterprises relying on department stores as the main sales channels continue to be affected by the passenger flow of the branch. Although the group has already strategically reduced the proportion of revenue from department stores, the proportion of income from counters has reached 42.6% at this stage. On the other hand, due to the small recovery in the consumer market, the same store sales in offline stores decreased by 23.3% in the first half of 2019 compared with the first half of 2018.

In addition, during the reporting period, the company established a brand differentiation development orientation centered on the main women's clothing brand, and contracted the development scale of Pote, JACK WALK and MARC ECK business of men's clothing, so as to increase the investment return of resources. The other brands of the company take profit improvement as the core, actively shrink the scale of business development, and reduce the inefficient input of resources.