Kappa Business In China Has Declined Overall While Business In Japan Has Maintained Growth.

Main Kappa brand clothing Retailer China trend released its first half performance report today. Data showed that the company's revenue in the first half of the year was 832 million yuan, down 29.4% from 1 billion 179 million yuan in the same period last year, and its net profit was 97 million yuan, a 56.9% decrease from 225 million yuan a year earlier. Its operating profit is only 53 million yuan, up 80.9% from 277 million yuan a year ago. Despite the sharp decline in performance, the company said the financial situation is still relatively stable. In June 30, 2012, the company held cash and bank financial products totaling 4 billion 800 million yuan, and there was no bank loan.

Since the second half of last year, the high storage of sports brand clothing enterprises has become a major ailment. Enterprises are cleaning up their inventory on the one hand and reducing the storefront on the one hand. China's semi annual report shows that in the first half of the year, the total number of Kappa brand stores decreased from 3119 at the end of the year to 2550 now, a decrease of 569, a drop of 18.2%. On the other hand, the company also changed the previous sales model, increased the spot sales ratio, and reduced the order targets of distributors, so as to reduce the inventory pressure of distributors and optimize the inventory structure.

The main business in China is concentrated in China and Japan. The results show that the business in China has been on the decline, while business in the Japanese region has maintained growth. According to the financial analysis, the overall downturn in China's business is due to the downturn in the market and the reduction of the dealer's order targets, resulting in a reduction in the sale volume, and on the other hand, the reduction of over season products to speed up the clearance of inventory. Sales discount And adjust the dealer's supply policy.

The main business of China's branch is concentrated on Kappa brand. In the first half of this year, its revenue was 600 million yuan, down 38.7% from 979 million yuan in the same period last year. The clothing business income of 394 million yuan, compared with the same period last year's 693 million yuan, fell 43.1%, the average selling price was 112 yuan, down 17% compared with the same period last year, the number of sales was 3 million 673 thousand, a significant decrease of 43.3% compared to the same period last year; footwear business income 185 million yuan, compared with the same period last year 247 million yuan decreased by 25.1%, the average income was 166 yuan, year-on-year price reduction 166, the number of sales double, fell year-on-year, and accessories revenue yuan yuan, a year-on-year decline.

The main business of the Japanese division is divided into two brands, Kappa brand and Phenix brand. The first half of the two businesses completed a total of 218 million yuan, up 15.3% from 189 million yuan a year ago. In the first half of this year, Kappa business revenue was 117 million yuan, an increase of 6.4% over the same period last year, and Phenix brand business revenue was 101 million yuan, a significant increase of 27.8% over the same period last year.

Although the company increased inventory clearance in the first half of the year, as of June 30, 2012, the company's inventory remained 359 million yuan, a slight decrease of 11% from 404 million yuan at the end of last year.

China's trend is that it will continue to optimize the distribution of sales channels in the second half of the year, and focus its efforts on promoting the business model of "brand + retail". Second, it will also plan to make a new attempt to start the "trend shop", which specializes in selling many brands of the group. Kappa The products of Robe Di Kappa, Phenix, X-nix and inhabitant combine different styles through the combination of brand differentiation. We should strengthen the visibility of the brands of the group and cultivate new business in China with low investment and risk. In addition, the company will continue to promote Kappa children's wear and Kappa glasses business in the first half of the year through franchising.