BELLE's Sportswear Has Led To A Surge In Stock Prices.

< p > > a href= "//www.sjfzxm.com/news/index_x.asp" > shoe industry < /a > big guy BELLE has a long history of sportswear business, but it is also a favorite business, making it pay the price of inventory rise. < /p >
< p > yesterday, < < a href= > http://xm.sjfzxm.com/ > > BELLE < /a > International Performance bulletin for the 12 months ended December 31, 2013 shows that its earnings and operating profits have risen to varying degrees while its inventory has also increased sharply. In December 31, 2013, the company's stock balance was RMB 7 billion 934 million yuan, which was 7 billion 33 million yuan higher than that in December 31, 2012. 12.8%. company admitted that its main reason was that sports apparel business inventory increased slightly faster. < /p >
< p > announcements showed that the total average inventory turnover of BELLE was 177.5 days in the 12 months ended December 31, 2013, an increase from 173.9 days in 2012. The average stock turnover days of footwear business are basically the same as those of 2012, but the average turnover days of sportswear business are 155.1 days, which is higher than the 146.2 day level in 2012. < /p >
< p > for this reason, the explanation given by BELLE is that the stock turnover days of sports < a href= "//www.sjfzxm.com/news/index_f.asp" > dress > /a > have increased, mainly because the Big brand business of sports brand distribution enterprises merged into the two quarter of 2013, and the total inventory volume is too large, which takes time to digest gradually. Secondly, the Spring Festival in 2014 was earlier, and the peak season for pre holiday sales was concentrated in January. Therefore, the sportswear Brand Company shipped earlier than usual, mainly in December last year. < /p >
According to P, BELLE completed its full equity interest in acquiring Big Step Limited in March last year. Acquired company sells and distributes sports apparel products in China, mainly with Nike and Adidas, and has hundreds of self owned stores. 880 million < /p >
< p > according to BELLE's description, Big Step business is merged into one, adding more than 500 stores at once. < /p >
"P" is also due to the acquisition of Big Step, BELLE's profits have also been affected. Data show that in the first half of 2013, the company's profit margin exceeded 5%, while the second half of the year was about 4%.. "The main reason is that there are some historical burdens in the two quarter of the new Big Step business, such as large inventories and unreasonable structure, which are mainly digested in the second half of the year. In the process of integration, local business adjustment also has a certain loss, reducing the profitability of the second half of the year." < /p >
< p > besides, BELLE believes that the main contradiction of China's sportswear market's weakness is not the inventory cycle problem, but the dealer's profitability and business continuity. Over the past five or six years, brand competition has intensified, retail margins have been squeezed, rents and labor costs have risen sharply, market expansion has grown more restrictive, dealers' profitability has declined significantly, some distributors' funds are scarce, and it is difficult to continue normal business activities, which has a greater impact on terminal sales, which makes it difficult for the entire value chain to function properly. < /p >