Kappa China Sales Increased By 20%. China'S Trend Is 899 Million Yuan In The First Half Of The Year.

In December 4th, the Kappa parent company's China trend released the mid 2019 report. As of September 30th, China achieved 899 million yuan in the first half of fiscal year 2019, an increase of 14.2% over the previous year, 561 million yuan gross profit, an increase of 23.8% over the same period last year, and a net profit of 188 million yuan, an increase of 36.2% over the same period last year.

According to the sales data disclosed, the sales volume of China's Kappa brand is 661 million yuan, accounting for 73.5% of the total revenue of the group, up 20.4% from the same period last year.

As for the growth of performance, China's trend indicated in the announcement that the group will continue to deepen the business mode of "brand + product" and "brand + retail", further enhance brand value, integrate brand advocacy culture into products, and build brand influence. At the same time, the group constantly optimizes and improves the new operation management and control model, optimizes the distribution of self operated network, improves the efficiency of the shop, expands the business of e-commerce, and better adapts and satisfies the consumer's purchase demand. At present, the total number of Kappa brand terminal stores reaches 1176, and there are 285 children's wear shops.

Despite the increase in Kappa performance, children's wear has declined. During the reporting period, Kappa children's clothing business income of 52 million yuan, representing a decrease of 9 million over the same period last year, down 14.8% over the same period last year.

In addition, the stock of Kappa also increased, and the average stock cycle increased from 229 last year to 290. As for the change of inventory cycle, China's trend indicates that the increase in inventory turnover is mainly due to an increase in the average balance of business inventories due to changes in sales patterns, but the Group continues to optimize the distribution of retail networks to enhance store efficiency, and it is estimated that inventory levels will further decline in the future.