Anta Is Good At Dealers, Increasing Rebates For Footwear Companies Or Affecting Profits.

It is reported that the mainland sports industry has been suffering from inventory problems in the past year and a half, but the situation of large retail stocks and large discounts has not changed.

According to our understanding, in order to ease the profit pressure of distributors, Anta has recently increased the number of dealers who offer them.

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Some analysts worry that the related expenses will affect the profit margin of the company.

No room for retail discount

Market participants revealed that Anta has stepped up its rebate (Rebate) efforts to ease the pressure on distributors to make profits, believing that there will be some pressure on the company's gross margin.

It is reported that Anta management regards 40% as a reasonable level of gross margin, and the company has a gross profit margin of about 42.3% last year.

The spokesman confirmed that the company did increase the rebate strength, but stressed that the relevant rebate is the nature of the award, according to the same store sales, shop numbers and other indicators, every six months.

The spokesman said frankly that the industry's inventory situation is more severe. The reason why companies choose kickbacks instead of increasing wholesale discounts is that they do not want to leave too much room for sale for retail terminals, thereby hurting the brand value.

If successful inventory is not a bad thing

The spokesman did not respond to the upper limit of the amount of rebate and the impact on profits.

Some analysts worry that the related expenditure will drag down the gross profit margin of the company, or need to re-examine the company's profit forecast this year. But other analysts say that flexible arrangement of subsidies to dealers is a consistent practice of Anta. If we can successfully motivate dealers to clear inventory, it is not a bad thing.

The 2 year adjustment period of the industry is normal.

Since the fourth quarter of 2010, the mainland sports brand has been like Domino dominoes, and there are many problems such as inventory accumulation and slowing sales.

Anta was strongly favored by the fund because of its strong data and silt.

But the company's fourth quarter of this year's subscription volume recorded a double-digit decline year by year, and the share price hit a new low for the year.

Anta fell 2.9% yesterday to close at 6 yuan.

"Don't misunderstand the adjustment period as the industry or brand.

Industry adjustment will take about 2 years.

Anta will slow down and run later. "

In recent interviews with mainland reporters, Anta chairman Ding Shizhong stressed that China's sports brand has been growing rapidly for nearly 20 years, with a period of adjustment of one to two years, which is very normal.

In the past, the company only considered the needs of wholesalers, but now it will think about how to shift from wholesale to retail.

In the future, the company will strengthen the terminal management of franchisees, requiring each store to order separately. At the same time, under the traditional ordering system, it will study how to make the replenishment mechanism more flexible.