The Shoe Industry, Which Has Gone Through The Shop And Downsizing, Is Still Not Out Of Its Bottom Line.

The shoe industry, which has gone through the shop and downsizing, is still not out of its bottom line. Listed companies in Hong Kong stock market Daphne Recently issued a performance warning, said the company in the first half of 2016, the same store sales fell 11.7%, 450 stores. Prior to this, A shares listed footwear companies on Saturday and Hasen shares also issued interim results notice, net profit pre fall rate has reached 30%.

Shoes are hard to sell, and many companies are seeking breakthroughs in transformation. According to the reporter, a lot of shoe companies are making efforts in e-commerce, but also carry out diversified layout, among which "women's shoes king". BELLE He sold jeans and bought Hamleys, a 100 year old toy store in Britain, and worked hard on Saturday. fashion The IP ecosystem has recently acquired two companies.

For the diversified transformation of listed shoe companies, a garment industry analyst at CITIC believes that under the background of the "ceiling" of most shoe companies, diversified layout will help to increase the profit point of enterprises. However, if enterprises blindly transform and ignore the conjunction between new business and main business in the process of diversification, it is easy to lose sight of the situation. In addition, the analyst also said that the decline in profits of Chinese shoe companies will continue.

Daphne averages 3 stores a day, "bad weather" as a result of declining performance.

The Daphne International Holdings Ltd issued a profit warning for the first half of 2016, saying that the company's performance will suffer losses during the reporting period. Data show that this is probably the first time that Daphne has recorded a loss in the recent 10 years. As for the reason, Daphne believes that in addition to the large scale closing stores and the same store sales minus growth led to sales decline, frequent rainstorms and floods in the mainland also affected the passenger flow.

Although weather factors can not be ignored, in fact, the decline in Daphne's profits began in 2013. Financial data showed that Daphne lost HK $379 million in 2015, down 315.24% compared to the same period last year, and net profit in the 2013-2014 year was HK $329 million and HK $176 million, respectively, down 710.8% and 482.4% respectively.

Daphne's performance in the two tier market was poor due to a sharp decline in the first half performance. Statistics show that Daphne international shares fell nearly 20% in just 7 trading days, while the Hang Seng Index rose nearly 1% in the same period.

Saturday Hasen shares interim results slipped

Other than Daphne, other listed shoe makers are also having a hard time. As of yesterday, two listed footwear companies in A shares issued their first half performance notices, including net profit of 18 million 916 thousand and 800 yuan to 27 million 24 thousand yuan in the reporting period for the first half of 2015, down 30% to 0% from the same period last year. It is worth noting that Saturday's net profit in 2015 was 22 million 534 thousand and 600 yuan, down 37.57% compared to the same period last year, compared with the 114 million yuan in the first year (2009), the net profit fell by more than 80% on Saturday. Hasen shares, which were listed in June 29th, are expected to decline by 30% in the first half of the year, with net profit of 33 million 620 thousand yuan in the first quarter, down 24.48% from the same period last year.

BELLE international, which was listed on the Hong Kong stock exchange with Daphne, also released its 2015 financial year (2015.2.28-2016.2.28) performance report in early July, showing that the net profit of HK $2 billion 934 million during the reporting period decreased by 38.41% compared with the same period last year. At the same time, BELLE's main business footwear business was down 8.5% in the same store, while the mainland's shoe retail outlets were reduced by 366.

Listed footwear enterprises transformation: BELLE sells cowboys and toys

Faced with the bottleneck of survival, footwear enterprises have accelerated the pace of transformation and upgrading. As early as 2013, on Saturday, it announced the establishment of an electricity supplier subsidiary to launch the O2O business. BELLE's e-commerce website acquired the injection of $200 million in 2014, and Daphne and Tmall reached a deep strategic cooperation. The company said it had further developed the O2O strategy while expanding the online sales platform such as Tmall and Jingdong, and the red dragonfly and AOKANG international also established the strategic positioning of e-commerce channels.

However, judging from the performance of listed footwear companies, the layout of the electricity supplier has not reversed the trend of declining performance. Therefore, many shoe enterprises have diversified layout to seek new profit growth points. At the beginning of July this year, on Saturday, it announced a 370 million yuan acquisition of 80% equity interest in fashion front and 70% stake in Beijing Xin Xin. As for the purpose of mergers and acquisitions, relevant officials of the secretaries' office on Saturday said to reporters, "put forward a new development strategy to create a fashionable IP ecosystem". It is understood that 30 online Red live events were held on Saturday in 20 cities' offline stores.

Saturday is not the only listed shoe company with diversified layout. After spending $90 million on the acquisition of 31.96% of Japan's Baroque fashion group, BELLE International announced early this year that it had acquired 29% stake in the Fashion Box SpA of the Italy Cowboy brand Replay parent company, and that it had entered the toy market with the full liberalization of the two child policy, and announced in October last year that it plans to buy 100 million of the oldest toy stores in Britain.

For the diversified layout of listed footwear companies, CITIC construction investment analyst said: "in the background of most shoe enterprises' performance" ceiling, diversified layout helps to increase the profit point of enterprises, thereby supporting the continued growth of performance. However, if the layout is blindly arranged, there is no agreement between businesses, so it is easy to lose sight of one another. "

The analyst also said that even if the transformation also needs to undergo 3-4 years of labor pains, the trend of Chinese shoe enterprises' profit decline will continue.