Economic Downturn, Shoe Companies Suffer, Income Slump

Nine Hing said that the decrease in revenue was mainly due to the decrease in group orders during the period, especially the reduction of orders for casual shoes in one of the group's main businesses. Gym shoes The utilization ratio of the factory is reduced, resulting in a decrease in efficiency and profit.

A month ago, nine Xing had surveyed the company's current situation and issued a negative earnings warning, saying that the reduction in export orders, the fall in unit prices, overcapacity and other reasons led to a decline in profitability and a sharp fall in medium-term profits.

In addition to the sharp drop in revenue, the nine self retailing business continued to be bad and closed the Pierre Balmain business.

When the China Daily was released in 2015, nine Hing had said that it would review the operation of Pierre Balmain. Luxury goods and Clothes & Accessories Tang Xiaotang, founder of retail industry research and consulting investment consulting firm No Agency, commented that "nine Xing may divest the French brand Balmain's Pierre brand Balmain in the future."

Sure enough, in one year, the Pierre Balmain business co operated by Balmain and nine Xing died. It lasted for four and a half years, and the remaining one store closed in the two quarter.

In 2011, nine Hing's Stella Fashion and French fashion brands. Balmain The company's Balmain Asia Limited signed a joint venture agreement to set up two companies. But the cooperation between Pierre Balmain and nine Xing has almost never been developed. At most, there are only 2 stores.

except Pierre Balmain Outside, nine other brands also continue to uphold the strategy of closing stores. The main brands Stella Luna shut down four stores in the first half of the year, and 12 outlets of What For For; JKJY by Stella closed 4 stores, with only 1 left. It is expected to be closed to Pierre Balmain.

In the two quarter of 2016, the revenues of manufacturing and retail businesses in the nine quarter of the nine quarter were recorded at 422 million US dollars and US $17 million 700 thousand respectively, representing a decrease of 10.7% and 15.7% respectively compared with us $472 million 600 thousand and 21 million US dollars in the same period last year.

In the two quarter, shipments of nine Hing manufacturing businesses fell 4.5%, down from 15 million 500 thousand pairs in the same period last year to 14 million 800 thousand pairs, with 25 million 400 thousand shipments in the first half of the year, representing a decrease of 4.5% over the same period last year. Two quarter per quarter Export shoes The average selling price dropped by 6.6%, from $30.5 to $28.5; in the first half of each year. Export shoes The average selling price is US $27.1, a 4.9% decline compared with 28.5 US dollars in the same period last year. The drop in export prices was mainly due to falling raw material prices and price wars.

The nine Hing retail business recorded a 14.1% drop in the same quarter sales in the two quarter, a drop of 17.6% in the first half and a total of 233 retail outlets in the first half of the year.