BELLE Announced 14 Month Performance Footwear Business Growth Slowed Down Significantly

< p > because the end of the fiscal year was changed from the end of 12 to the end of 2, after the closing of the Hong Kong stock in May 26th, BELLE International announced the annual performance announcement for the 14 months ended February 28, 2014.

Reporters noted that BELLE International's total revenue in the past 14 months was 43 billion 67 million yuan, an increase of 10.05% over the same period last year, with net profit of 5 billion 159 million yuan and an annual growth of 0.97%.

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< p > classification, BELLE footwear business revenue increased 5% to 26 billion 392 million yuan, sports and clothing business revenue increased 19.1% to 16 billion 670 million yuan.

BELLE pointed out that the footwear business growth slowed significantly during the period, mainly because the same store sales only recorded a growth of 0.6%, the shop speed has slowed down, and no new brand replacement has been made after the termination of individual agency brand business.

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< p > < strong > sales in the same store in the first two months of this year declined < /strong > /p >

< p > for the change of the financial year, BELLE said it was out of line with the general retail cycle of footwear and sports retail business.

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< p > it is worth noting that compared with the previous year's end of 2013, the annual revenue and net profit increased by 10.3% and 3.2% respectively, and the 14 month earnings growth was slightly worse.

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UBS reiterated its selling rating to BELLE after the announcement of the P performance announcement.

UBS pointed out that BELLE's financial year ended to the end of February, and the profit in the past 14 months was almost flat. During the same period, the same store sales increased by only 0.6%. In the 2013 fiscal year 12 months, the same store sales increased by 2%. BELLE's same store sales recorded negative growth in the first two months of this year, and its profitability declined significantly.

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< p > according to the business data released by BELLE, the sales of BELLE footwear in the same store in the 3 months from December 1, 2013 to February 28th of this year dropped by 2.7%, the first negative growth since the 2007 "a href=" //www.sjfzxm.com/news/index_c.asp "listing" /a ".

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< p > > a href= "//www.sjfzxm.com/news/index_c.asp" > BELLE international < /a > CEO Sheng peppers admitted that in the next 2~3 years, the slowdown in group business growth will become normal and there will be no explosive growth in the short term, so the pace of opening stores will slow down in the future.

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< p > < strong > do not implement price integration on line and offline < /strong > < /p >

< p > in fact, < a href= "//www.sjfzxm.com/news/index_c.asp" > footwear business < /a > has been the largest part of BELLE's overall revenue.

In the view of the industry, the main reason for BELLE's growth slowdown is lack of brand image, insufficient investment in brand building, and e-commerce continues to take away BELLE's share.

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< p > for the development of e-commerce, BELLE said it had no company level cooperation with Tencent and Alibaba. Its online store excellent shopping network grew by 50% to 60% per year, lower than the market level.

At present, BELLE is still exploring the online and offline business strategy, the specific direction of development is still uncertain, but it is certain that the price integration will not be implemented online and offline.

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< p > although the development of e-commerce business is still in the exploratory stage, but as the industry leader, BELLE has undoubtedly been in the forefront of the industry in its expansion and opening up to new areas.

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< p > according to the announcement, in the 14 months ending February 28, 2014, BELLE international has carried out two strategic investments and cooperation.

On the one hand, it established a joint venture with Baroque Japan Co., Ltd., and actively entered the fashion women's clothing market. On the other hand, BELLE also acquired the Dragon Ho Heaven and Earth Pty Ltd, which has been working on the high-end casual shoes market for nearly 20 years. The reporter learned that the acquisition completed the delivery process in March this year.

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Cui Hongbo, founder and chief executive officer of Shanghai Zheng Jian brand management consultant Co., Ltd., told the daily economic news reporter that BELLE has been adjusting its business mode. The intention of the pformation is obvious. "However, the clothing and footwear business models are different. BELLE will face some challenges," P told reporters.

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