La Natsu Bell'S Children'S Clothing Category Growth 1.5% Growth In Inventory Growth

The downturn in the clothing industry has been going on for many years. In such a case, when it comes to Hong Kong, it claims to be the "China Version".

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Net profit has increased by more than 20%.

However, reporters found that behind the brilliant performance of the company is the same store sales decline, as well as inventory growth.

The number of shops continues to grow.

According to the statistics of the China National Business Information Center, the number of retail sales of major retail enterprises in the whole country decreased by 0.1% compared with the same period in 2015, and the retail sales of clothing commodities decreased by 0.3% compared with the same period last year.

Among them, children's clothing category increased by 1.5%.

and

Classes decreased by 1.2% and 0.9% respectively.

In such a declining market environment, La Natsu Bell did not seem to be affected.

Recently, the company released its 2015 performance report. In the report, the company said that the clothing industry continued to be restrained by the weak consumer market in 2015, and the phenomenon of clothing discount and price reduction was prominent.

However, La Natsu Bell's performance in 2015 was very good. The company's operating income and operating profit were 9 billion 96 million yuan and 828 million yuan respectively, representing an increase of 16.4% and 12.9% respectively compared with 2014.

The net profit of the company in 2015 was 615 million yuan, up 22.2% from 2014.

Why can the company's performance be counter productive? The announcement shows that there are two reasons for the increase in revenue, one is the expansion of the retail network, and the two is the rapid growth of the online platform revenue.

In 2015, the number of retail outlets was 7893, compared with 6887 at the end of 2014.

In a year's time, it has increased by more than 1000 outlets. The company's goal is to increase sales outlets to 10000 in 2018, that is to say, the company will still maintain a fast pace of opening stores in the next two years.

At the same time, the company's online platform sales grew rapidly, sales increased from 37 million 610 thousand yuan in 2014 to 589 million yuan in 2015.

Inventory growth exceeds revenue growth.

While opening up new stores, the company's "old" outlets are not satisfactory.

The bulletin shows that the same store's income is declining, and the same store revenue increased 1.7% in 2014. In 2015, the same store's revenue grew by -3.2%.

At the same time of rapid expansion, there will inevitably be a problem that almost worries all garment enterprises: inventory.

According to the performance bulletin, La Natsu Bell's stock grew from 1 billion 327 million yuan at the end of 2014 to 1 billion 756 million yuan at the end of 2015, an increase of 32%, which exceeded the growth rate of the company's revenue.

The company's share of inventory is also rising.

From 2012 to 2015, La Natsu Bell's inventory depreciation allowance was 4635 yuan, 116 million yuan, 243 million yuan and 289 million yuan respectively.

La Natsu Bell's performance was released on Friday, and this Monday (March 14th) opened down, closing at HK $10.8, down 6.74%.

In October 9, 2014, La Natsu Bell was listed on the Hong Kong Stock Exchange and the issue price was HK $13.98 / share.

After a year and a half, the share price is still breaking.