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La Natsu Bell Was Issued A Warning Letter By The SFC, The Future Or Key Layout Of The County-Level Market Franchised Store.

2019/8/19 12:57:00 67

La Natsu BellWarning LetterSFC

"National dress" Shanghai La Natsu Bell dress Limited by Share Ltd (hereinafter referred to as "La Natsu Bell") meets new trouble again.


On the night of August 17th, La Natsu Bell announced that the company received the decision of the Shanghai Securities Regulatory Commission of the China Securities Regulatory Commission on the adoption of the warning letter issued by the Limited by Share Ltd of Shanghai dress and adornment in August 17th (hereinafter referred to as the "warning letter"). The warning letter said that the net profit disclosed by La Natsu Bell in the January 31, 2019 performance notice is quite different from the actual performance, and has not made sufficient risk hints to the performance from profit to loss. The information disclosure is inaccurate, incomplete and incomplete. The act violates the relevant provisions. The Shanghai regulatory authority of the Securities Regulatory Commission of China has decided to take administrative supervision measures for you La Natsu Bell to issue a warning letter.


The first textile network reporter read the announcement that La Natsu Bell, in January 31st, disclosed in his 2018 annual earnings preannouncement notice, that the net profit attributable to shareholders of Listed Companies in the year 2018 (hereinafter referred to as net profit) decreased by 458 million yuan compared with the same period in 2017, down by about 92% compared with the same period last year, and disclosed in the risk warning part that "there are no major uncertainties affecting the accuracy of the performance notice". In March 23rd, La Natsu Bell disclosed the 2018 annual performance correction and performance bulletin, and predicted 2018 yuan net profit loss of 155 million yuan. In March 29th, the annual report of 2018 announced by La Natsu Bell showed 159 million yuan in 2018 year.


On the basic side, La Natsu Bell's profits have been on the decline. La Natsu Bell's semi annual report released earlier this month showed that net profit in the reporting period was between -4.4 billion yuan and -5.4 billion yuan, down about 286.6% to 329% compared with the same period last year. The net profit attributable to shareholders of listed companies was -4.9 billion to -5.9 billion yuan, down by 364.5% to 418.5% over the same period.


La Natsu Bell said that in the first half of the year, the year-on-year decrease of over 20% in the first half of the year was affected by the continuing downturn of the domestic retail market and the optimization of offline channels. In addition, the return of bank loans during the reporting period was also negatively related to the production and operation of the company.


Reporters learned from La Natsu Bell in late March, according to their senior executives, there were several main reasons for the loss in 2018:


Sales side slipped, La Natsu Bell's main layout of the department stores and shopping center passenger flow declined, the consumption side pressure (especially in the second half of 2018), at the same time, La Natsu Bell cleaned up and digested inventory, causing gross margin to decline, gross profit margin fell 2 points over the same period, gross profit decreased by 430 million over the same period.


Foreign investment in small brands is a drag. Beginning in 2015, La Natsu Bell increased investment abroad and invested in some small brands. In 2018, the controlling subsidiaries of the company lost about 120 million, down by about 140 million compared to the same period last year. In addition, investment funds and joint venture enterprises had a about 50000000 decrease in investment income in 2018. Overall investment income decreased by 200 million over the same period last year.


The cost ends are rigid and the pressure is large. Beginning in the second half of 2018, lac was active in closing stores to speed up closing losses or inefficient shops, paying more attention to the quality of shop opening, slowing down the pace of new shops, closing stores and accelerating amortization, which affected net profit by about 90000000.


In addition, there are some adjustments in accounting policy, which are calculated by the aggregate method. In 2018, the company's operating income was 10 billion 176 million yuan, and its operating income in 2017 was 10 billion 446 million yuan, compared with 2.58% in 2018.


The aforementioned La Natsu Bell executives believe that from the analysis of the causes of these performance, La Natsu Bell's previous direct operation mode and multi brand operation mode may be faced with the need of adjustment and reform.


Cheng Weixiong, an independent analyst in the clothing industry, said in a media interview that the key to revitalize La Natsu Bell is to solve the problem of whether a single store can make profits. If we can not make profits, it is normal to shut down and turn around. The brand that can not bring cash flow is meaningless, so it is better to focus on doing well the brand that can bring cash flow.


In Cheng Weixiong's view, the whole direct business + multi brand business mode eventually increased the burden of La summer bell. There were four major problems, such as many stores, more brands, more stocks and more discounts, resulting in frequent decline in business performance.


La Natsu Bell executives mentioned that the impact of direct transfer mode on financial reporting is that direct sales will turn into affiliation and joint venture. Revenues will decline and profits will increase. This part of the impact on the overall statements depends on the proportion of affiliation or joint venture. The incremental part will expand the blank market with franchisees, which will increase sales and profits for the company.


At present, there will not be a large increase in accounts receivable in the way of La Natsu Bell's joint operation at provincial and municipal levels. On the specific refund arrangement, the sales return of the original store will be transferred to the partners, but the corresponding part of the operating fixed costs (such as rent, personnel costs) will also be transferred to the partners, and the net cash flow may not change significantly; the department stores and special counters are collected through the company.


In the joint venture or franchise mode, La Natsu Bell may also use the form of split, so sales returns will be quickly received. In addition, even if there is an account period, the company will also collect some performance bonds, etc., according to the city level, the company may be a second-line direct battalion, and the three or four line is to join / pool, but it will not be absolute.


The reporter previously obtained a "La Natsu Bell group US" business plan, also shows that La Natsu Bell wants to take three or four line cities as the main part, and some provincial capital and prefecture level cities, to open about 50-100 square meters of excellent shops, selling products related to digital, furniture, travel, clothing accessories, beauty gifts, snacks snacks and other fields, covering more than 90% of daily life needs of consumers. La Natsu Bell said that the company will start from the design side to truly achieve cost-effective retail products.


Thanks to the "multi brand + full channel + full direct camp" mode, in 2012-2017 years, the number of La Natsu Bell outlets has increased from 1841 to 9435, with an average of 1266 stores a year.


However, the earnings report also showed that as of the end of 2018, La Natsu Bell had 9269 offline retail outlets, a net decrease of 179 compared with the beginning of the year.


La Natsu Bell said that the company adheres to the multi brand development strategy, and the layout of the whole country is conducive to expanding the brand influence of the company and establishing a long-term and stable strategic cooperative relationship with the shopping malls and property groups. By the end of 2018, the number of outlets in the company was 9269, and the overall distribution of provinces and cities had no significant changes compared with the end of last year. In the 10 provinces of Shandong, Guangdong, Henan, Sichuan, Jiangsu, Fujian, Hubei, Hebei, Liaoning, Zhejiang and so on, the total number of outlets was 5421 at the end of 2018, accounting for 58.5% of the total number of stores, and little difference from the 58.8% at the end of 2017. In 2018, the number of stores in the company decreased by 179. Following the further adjustment and optimization of the company's store structure, and in order to cope with the situation that the outlets were scattered and the management radius was too large, the direct business advantage could not be brought into full play and the operation and management cost remained high, the company accelerated the joint operation and franchise business mode in 2019, accelerated the closing of the loss and inefficient Direct stores, strictly controlled the quality of the newly opened stores, and predicted that the number of Direct stores would be further reduced in 2019, but overall it should be conducive to the steady improvement of the company's future profit margin level.


In view of La Natsu Bell's multi brand strategy, the number of store statistics is calculated according to the number of outlets. As a collection of stores has multiple brands, it is counted as multiple outlets. As at December 31, 2018, the total number of outlets was 9269, located in 2908 department stores / shopping centers. In December 31, 2017, the total number of outlets in was 9448, located in 2783 department stores / shopping centers.


Dongxing Securities researcher Liu Chang said that for the clothing industry, multi brand strategy mainly includes two situations: one is to use different brands for the same products in different target markets; the other is to use different brands for a product at the same time or in the same market on the same market. Two. The first application in the clothing industry is the application of different brands in different market segments. Each brand is aimed at different target subgroups to product design, image positioning and distribution planning, emphasizing differences between different brands of similar products. Among them, the second is brand extension, which is about to apply the main brand from the main category to other categories, such as millet is the brand from mobile phone applications to home appliances and many other scenes of life.


From the perspective of brand acquisition, there are two ways to develop multi brand strategy: external acquisition and internal training. Internal training often takes a long time, because the establishment of brand power takes time to accumulate, while mergers and acquisitions need to consider the synergy of the acquirers.


But Liu Chang also said that the main brands of some clothing listed companies have already had a considerable scale, and the layout of many brands has also started. However, the lack of supply chain when and how to support the remote strategy can only become a "castle in the air". The synergy among multi brands is also the key to success.

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