Music Continued For Three Years, A Loss Of &Nbsp; Shoe Enterprises Lining Was "Fujian Department" Catch Up.

April 11th hearing

Three years of loss

As a big brother of the local sports brand, Lining finally took out his report card before April.

Li Ning Co's 2010 performance report shows that Lining's annual sales grew by only 13%, while net profit increased by 17.4% to 1 billion 108 million yuan.

China Merchants Securities analysts believe that Lining's performance growth is lower than expected, which may be affected by two main factors. First, the integration of retail networks started in September, which led to the cancellation of some orders in the three and fourth quarter of Lining, followed by the unsatisfactory sales situation of other brands and the overall sales growth of the company.

According to the financial report, in 2008, Lining received the exclusive concession of Lotto (Le Tu) trademark for 20 years, and Le Tu lost three consecutive years.

After Lining won the Lotto brand in 2008, the brand lost 12 million 400 thousand yuan in the year. In 2009, the loss increased sharply to 76 million 910 thousand yuan; in 2010, it continued to expand to 91 million 749 thousand yuan.

Over the past 3 years, the Lotto brand has lost nearly 200 million yuan.

A few days ago, Lining announced that the third quarter 2011 order would be equally unsatisfactory.

The results show that the number of orders for shoes and clothing products has dropped by about 17% compared with the same period last year, and the order volume has dropped by about 14% compared with the same period last year.

Lining said the third quarter order would be the low point of the four order.

"Fujian Department" performance catch up with

In 2010, the competition among domestic sports brands was more intense, but the "Fujian Department" showed more gratifying pcripts.

Anta sports released 2010 annual results announcement that as of the end of December 2010, Anta's annual turnover increased by 26.1% to 7 billion 408 million yuan over the same period last year, and net profit increased 24% to 1 billion 551 million yuan over the same period last year.

As of December 31, 2010, XTEP's net profit was 813 million 700 thousand yuan, an increase of 25.7% over last year.

Thanks to the strong stimulation of the Asian Games, the company achieved a net profit of 917 million yuan in fiscal year 2010, an increase of 45% over the same period last year.

Although there is still a gap between the "Fujian Department" and Li Ning Co, the net profit growth is obviously better than that of Li Ning Co.

It is worth noting that Kappa brand, similar to that of Lotto, was abandoned by Lining after its abandonment.

China's trend released 2010 results show that net profit has reached 1 billion 464 million yuan a year, higher than last year's overall profit of 1 billion 108 million yuan, while Kappa business accounted for about 85% of China's trend income.

But Li Ning Co expressed concern about the local sports brands in 2011. Li Ning Co believes that the overall market size of China's sporting goods industry will remain low in the next few years, but the rapid rise of raw materials, labor costs and retail rents will also bring tremendous pressure to all sectors of the industry chain.

It is reported that Li Ning Co also lowered the 2011 store opening plan, from the original 800 to 400, and plans to move to lower prices of basic products.