Daphne'S Decline Was Downgraded By Merrill Lynch.

On Friday, Bank of America Merrill Lynch, Merrill Lynch, lowered its Daphne International Holdings Ltd rating from buying to neutral.

It is said that the profitability of the shoe manufacturer is expected to be worse than expected. Other market or downgrading expectations for Daphne this year and next two years, as well as unfavorable factors such as TPG convertible bonds of private equity fund, are all the reasons for the bank's downward expectations.

Daphne released the three quarter last month.

The core brand business of the group achieved 6.3% growth in the same quarter in the three quarter, an improvement of 2.4% over the two quarter.

The promotion mainly benefited from the star effect of the new brand spokesperson Gianna Jun and the low base number (same store sales fell 18.1%) in the same period last year.

In the first three quarters, the same store sales of core brand businesses fell by 12.2% over the same period last year, but there was still a 1.8% decline. In addition, the discount on the sale of goods at the end of the season increased, and the gross margin was narrowed.

Merrill Lynch said that it is expected that Daphne will continue to decline in the same store sales in the same quarter due to the initial warm weather in the fourth quarter, and the promotion action will continue to pressure Daphne's gross margins.

Bank of America's latest target price for Daphne is HK $4.05, after HK $4.3.

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The golden age of mass sports retail market is coming.

The world's largest sporting goods retailer Decathlon (Decathlon) has reached 100 stores in China, and the target of "opening 150 stores in China before 2015" will be raised three years ago to speed up the total number of stores to 500 in five years.

Decathlon has been accelerating China's expansion since 2009.

From the number of stores, 10 stores opened in 2010, and 2012 opened 16 stores. In 2013, the plan was to open 23 stores in the mainland. In 2015, Decathlon is expected to open about 60 new stores in China.

From the perspective of Decathlon's presence in China, it is mainly concentrated in the eastern coastal provinces and central provinces.

At present, there are mainly 6 stores in Beijing, namely, Da Jiao Ting shop, Yizhuang store, Longde store, Lai Guang Ying store, craft West store and Xisanqi store.

But the three or four line cities and the western region are becoming the direction of Decathlon expansion.

Di Bai hang, President of Decathlon group's real estate division, has said that the development of urbanization in the western region is very fast, and Decathlon is now entering these areas.

Meanwhile, Decathlon is seeking partners to cope with the rapid expansion.

In August of this year, Huayuan Real estate reached a strategic cooperation agreement with Decathlon and signed the strategic cooperation agreement. Huayuan Real Estate and Decathlon's first strategic cooperation was set up in Huayuan good world project in Tongzhou.

In March last year, Decathlon and Vanke reached a strategic cooperation, which means that Decathlon will then enter into Vanke's residential or commercial real estate projects by leasing or customizing.