It Is Difficult To Increase The Income Of The Modern Avenue.

In February 28th, it was the 7th anniversary day for men's Boulevard 002656.

On the same day, the performance of modern Avenue announced in 2018 that the net profit attributable to the owners of the parent company in 2018 was 43.77% lower than the same period last year; operating income increased by 69.70% over the same period last year; and the basic earnings per share decreased by 45.71% over the same period last year.

Increasing profits does not increase profits. From the perspective of investors, the performance is not satisfactory.

The modern Avenue, formerly known as card slave Road, landed on the small and medium sized board of Shenzhen Stock Exchange in February 28, 2012.

In the past 7 years, it has gradually pformed from a domestic senior menswear brand operator to a global fashion brand operator. The operation category has changed from the original "clothing" to "clothing, beauty makeup, footwear, luggage, jewelry accessories, boutique" and other parallel development.

From the 2012 quarter to the three quarter of 2018, the operating income of the modern Avenue was 636 million yuan, 799 million yuan, 700 million yuan, 724 million yuan, 754 million yuan 921 million yuan and 1 billion 48 million yuan respectively, corresponding net profit 177 million yuan, 148 million yuan, 148 million yuan, -0.08 billion yuan, -3.33 billion yuan, Yuan Yuan and Yuan Yuan, the weighted average return on net assets (ROE) were respectively, ",", ",", ",", "-20.59%", "and".

From the above data, we can see that in the past 7 years, although the operating income has kept rising slightly, the net profit has fluctuated. In 2015 and 2016, it even lost money continuously, while most of ROE was below 5%.

There is no doubt that such a business performance is disappointing, and profitability is far behind the bank's financial management level.

From the perspective of free cash flow, the net outflow of investment cash flow accumulated from 2012 to the first three quarters of 2018 totaled 2 billion 109 million yuan, and the cumulative value of operating cash flow was 175 million yuan, which was much larger than the latter.

It means that in 7 years, the company did not create net gold and silver for shareholders.

However, this does not hinder the executives' high cash in hand. According to the data, in 2018, Lin Yongfei, the real controller, reduced his holdings for about two yuan by about 197 million yuan, reducing the average price by 22 yuan.

Interestingly, after the reduction of shareholder Lin Yong Fei, the stock price trend of modern Boulevard has been plunged rapidly, and a large number of small and medium-sized investors have no chance to see "high cash in cash" again.

Catch up with the Internet for seven years, is there any light ahead?

For garment enterprises, brand, channel and customer group are the key factors affecting performance.

Reporters read the modern road annual report, found that since the listing, the company's keywords are "Internet" and "pformation".

In recent years, due to the escalation of consumption and the influence of e-commerce penetration, the traditional clothing industry is facing fierce challenges.

In the era of mobile Internet, the change of consumer demand and shopping habits deeply affects the management strategy of men's clothing enterprises.

In the 2013 annual report, modern Avenue said that the traditional retail industry in the mobile Internet era is likely to regenerate vitality through innovation such as O2O, and there has been a great change in terminal retail formats.

As consumer preferences change, buyers' stores and brand collection stores will become a new business model for the domestic garment industry.

In 2014, the modern Avenue established the positioning of "international brand operators"; in 2015, the company's strategy changed to "modern social networking +" global resource integration; in 2016, the concept of "Internet +" global fashion brand operators became the theme of the company; in 2017 and 2018, technological innovation became a new theme.

Under the guidance of constantly changing strategic guidelines, since 2014, the management strategy of physical stores has been constantly adjusted under the line of modern Boulevard. For online channels, the first self built e-commerce platform has been settled in suning.com, Tmall, vip.com, Jingdong, koala, Xiao Hong and other electronic business platforms. In the extension direction, Italian company LEVITAS S.P.A was acquired in 2015.

51% stake, the company's main asset is its high-end sports fashion brand Dirk Bikkembergs; in 2017, the acquisition of Yue ran heart 100% stake, the latter is engaged in mobile Internet social networking tools application development and operation services business, the main use of the group for the European and American users; in 2017, invest in the Silicon Valley business company YouSpace, intends to through the interactive shopping screen, interactive advertising, interactive VR experience and robot vision technology, to create intelligent online shopping experience.

Reflecting the data, the number of stores has been decreasing since 2013, and the total number of stores has been maintained at around 300 since 2016.

Another group of data is that the proportion of agency brand accounts for the company's operating income.

Data show that since 2015, agency brand accounted for more than 32% of the company's revenue.

Agency sales are an important part of the company's business content.

However, the agency mode is a double-edged sword after all. On the one hand, the sale of internationally famous brands can get a higher sales premium. On the other hand, the international brand channel policy has great risk of change. In recent years, many famous brands, such as Ralph Lauren, have eliminated the domestic agents, and have been operating in the Chinese market in the form of Direct stores.

At the same time, it is necessary to pay the corresponding cost and maintenance cost to obtain the agent qualification of famous brand.

However, the "Internet +" pformation strategy of modern Boulevard is sometimes difficult for investors to understand.

In October 22, 2018, morden Avenue said that it would sell Yuenan 100% shares and the related assets and liabilities of the headquarters building to determine the total paction consideration price of 2 billion 240 million yuan. Among them, Yue's 100% stake was estimated by the income method. The estimated value is about 720 million yuan. The related assets and liabilities of the headquarters building are estimated by the asset based method, and the estimated value is about 1 billion 520 million yuan.

Ruifeng group owns 28.56% of modern Avenue and is the largest shareholder.

Yuet ran heart merged into the report of Listed Companies in May 1, 2017, and realized a net profit of 46 million 260 thousand yuan in the 5-12 months of the year. The net profit after deducting the net profit for the whole year was 49 million 715 thousand and 200 yuan, and the completion rate of the current performance commitment was 109%.

Despite the eventual cancellation of the deal, investors have never been able to dispel doubts that the management strategy of modern Boulevard has always wavered.

Since the reduction of shareholder Lin Yong Fei, the stock price trend of modern Boulevard has been plunged rapidly, and a large number of small and medium-sized investors have no chance to see "high cash in cash" again.

Catch up with the Internet for seven years, is there any light ahead?

Combined with the company announcement and public information analysis, it is found that the new retail technology platform with the core of YouSpace and electricity supplier has become the 2018-2020 year development strategy of the company.

In the light of the vision at the beginning of the listing and subsequent changes, investors can not doubt whether the listed companies have a way out.