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    Urban Beauty Income Decreased By 19.9% In 2019 Compared With 1335 In Stores.

    2020/3/27 10:51:00 0

    Urban BeautyBrandOffline RevenueUrban Beauty Annual Performance

    Recently, city beauty released its 2019 performance. The announcement shows that the total income of 2019 yuan was 4 billion 82 million yuan, a decrease of about 19.9% compared with the same period last year, and the loss attributable to shareholders was 1 billion 298 million yuan, and the profit attributable to shareholders should be 378 million yuan in the same period last year.

    During the year, the gross profit margin of the group dropped to about 22.6% (2018: 41.7%). The sharp drop was mainly due to a one-time write off of about 738 million yuan in old stock. Excluding this special item, the gross profit margin is about 40.7%. The slight drop is mainly due to the fierce competition in the market and the higher discount offered to customers.

       1335 stores in 2019

    According to media reports, as of December 31, 2019, there were 5970 stores in the city (2018: 7305), of which 1269 (2018: 1406) were self owned stores and 4701 (2018: 5899). Compared with the number of stores in 2018, urban beauty reduced 1335 stores in 2019.

    In terms of store iteration, the urban beauty set up six shopping center stores with the theme of family life concept in the fourth quarter of 2019, and opened and renovated seventh generation personal clothing stores in December 2019 to attract consumers.

       Take a number of measures to improve business

    According to the financial report, in order to improve business performance, the group has taken various measures to appoint Xiao Jiale, a veteran executive in the domestic retail industry in the second half of 2019, as the new chief executive officer and other senior managers to lead and drive the group's strategic measures and enhance the group's Executive ability and efficiency.

    In August 2019, the Boston consulting company, an international consulting firm, was appointed for a long time to review the group's overall operation strategy, main brand operation mode, inventory management, optimized management organization structure, full channel retail management, and optimize the structure of direct store.

    In addition to store iteration, urban beauty also put forward a transformation plan in November 2019 and December: return to products that focus on practical, functional and cost-effective products; in December 2019, the new spokesperson, Guan Xiaotong, launched the new commercial advertisement on the theme of "making her own idol", so as to promote the new design of quality products, and increase investment in e-commerce channels and Tencent programs. In order to break the boundaries between online and offline marketing and achieve full channel marketing, expand business territory to fill the market gap in the domestic low level cities, and build a large-scale channel to clean up old and expired stocks (such as special stores and discount stores) to maintain inventory in a healthy level, optimize the franchisee's structure and expand potential Southeast Asian markets, and control costs and benefits. Organizational structure and reduction of unnecessary costs.

    In 2020, city beauty announced in the announcement that the group has formulated and is carrying out various transformation and reorganization measures and measures. The group will also be involved in personal hygiene business in 2020. Quality masks and antibacterial clothing products (including bra, underwear, vest and household clothes) will be put on the market in the second quarter or the second half of 2020. In addition, air disinfection solutions and sprays will also be launched in the foreseeable future. The company believes that these initiatives can expand the company's product portfolio, and bring dividends to shareholders in the future.

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