Lies Dan Fell 10% In Second Quarter, Closing 47 Stores

According to reports, the domestic women's shoes market has been hit by performance, followed by BELLE.

After the Nine West, Le saunda's second quarter financial performance continued to fall. As of the end of August, the group's self retailing business fell by 10.2% compared with the same period last year, while the same store sales fell 9.9%.

At present, the group has 836 retail outlets in the mainland, Hongkong and Macao, a net decrease of 47 over the same period last year.

Lies Dan announced earlier that executive director and chief executive Liu Shunhui resigned on August 31st for personal reasons. The group is looking for alternatives.

It is worth noting that

Total sales of e-commerce business fell by 7.2%.

As for the reason, Liu Shunhui said earlier that more overseas brands to China to open e-commerce business, so that the group needs to strengthen the promotion of e-commerce, but the group found that the rate of return on electricity providers is not high, so in the second half of last year began to reduce promotional expenses, so that the growth of electricity providers slowed down, the future will be more cautious in the promotion of e-commerce investment.

By the end of February, Lies Dan recorded 1 billion 621 million yuan in revenue last year, down 3.7% year on year, and net profit plunged 35.5% to 122 million yuan.

The group pointed out earlier that this year is still a difficult year, and will reexamine the scale of shops in the future, and will close some potential shops in China.

Last year, group same store sales fell 8%, down 4.2% in the first half and 11% in the second half.

In terms of Hongkong and Macao, retail sales in Hong Kong and Macao are expected to remain between 10 and 13 this year as retail sales continue to be difficult and rent has not been slashed. Last year, 8 branches were closed.

By the end of the press release, Lies Dan's share price has fallen more than 45% in the past year, and the group's market value is HK $1 billion 136 million.

Due to the weakness of domestic retail sales and the impact of e-commerce, the shoe brands in China have been caught in the bottleneck of development, and many brands have plunged into the throes of strategic adjustment.

BELLE released its operating data for the second quarter of this year and sales of footwear business fell by 10% compared with the same period last year. This is also the tenth consecutive quarterly decline in footwear sales since the fourth quarter of 2014. The company closed 276 stores in the quarter.

In 2013, the market value of former shoe king Daphne exceeded 17 billion yuan in 2013, but in three years, its market value plummeted to 1 billion 700 million.

According to public information, since 2015, Daphne has closed 1277 stores, and in 2015 the group also suffered its first loss in 10 years, with a loss of HK $379 million.

In addition, the market downturn makes foreign shoe brand is also difficult to be independent.

Nine West Jiu Xi parent company Sycamore Partners plans to liquidate the brand.

Credit rating agencies have downgraded the credit rating of the company limited to a negative rating because the brand's income and profits continued to slide.