La Natsu Bell Lost Nearly 500 Million Yuan In The First Half And Closed About 2500 Stores.

Recently, the La Natsu Bell clothing Limited by Share Ltd of Shanghai (hereinafter referred to as "La Natsu Bell") released the semi annual report in 2019. The company achieved 3 billion 951 million yuan in the first half of the year, a decrease of 1 billion 190 million yuan compared with the 5 billion 141 million yuan in the same period last year, down 23.16% from the same period last year. At the end of the reporting period, the number of business outlets in the company was 6799, which was reduced by nearly 2470 compared with the end of last year, with a reduction of 26.65%. In the first half of 2019, the gross profit of the company decreased by 1 billion 115 million yuan in the first half of the year.

The report points out that, in the first half of 2019, La Natsu Bell realized the net profit attributable to shareholders of listed companies was -4.98 billion, which was mainly caused by the following factors: loss of company efficiency, loss of stores, active contraction of business and overall decline in passenger traffic.

(1) in the first half of the year, the gross profit of the company decreased by 1 billion 115 million yuan compared with the same period last year, mainly due to a significant decline in the company's operating income over the same period last year.

(2) the implementation of the new leasing criteria affects the company's net profit attributable to shareholders of Listed Companies in 2019 for -4461 yuan in half year.

(3) although the company's business transformation, adjustment, reduction of capital and efficiency are all advancing, the actual effect still needs some time to be gradually reflected. The reduction in the period cost can not offset the effect of gross profit decrease, and the fixed cost is higher, and the corresponding decrease ratio is less than the decline of income.

It is reported that during the reporting period, La Natsu Bell established a brand differentiation development direction centered on the main women's clothing brand, contracted the development scale of men's clothing brands Pote, JACKWALK and MARCECK, and retained core shops and integrated men's clothing team to improve 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. At the same time, by the company's strategic contraction strategy, consumption growth slowed down and the number of physical stores reduced passenger traffic and other factors, the company's main women's clothing brand La Chapelle, Puella, 7 Modifier, La Babit e revenue decreased by more than 20% over the same period. From the point of view of channels, the sales revenue of counters, monopolization and e-commerce channels declined compared with the same period last year.

As of June 30, 2019, La Natsu Bell had 6799 offline retail outlets, which were widely distributed in about 2111 commercial entities. Overseas outlets are owned by the brand NAFNAF, a total of 580 retail outlets, of which 386 are direct and 194 are joined. Compared with the end of December 2018, there were 9269 net reductions of 2470, and the number of outlets decreased by 26.65%.

In the second half of this year, La Natsu Bell plans to continue to implement the offline retail outlets optimization strategy in the three quarter, and plans to retain 6000 business outlets within the country to improve the efficiency and profitability of the single store. The main business is expected to enter a more benign development track in the fourth quarter. In addition, we will focus on developing superior women's brand with superior resources, clarify brand positioning, build differentiated brand matrix, focus on reducing costs and increase efficiency, and further tap the potential to hedge against changes in internal and external business environment.