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Baozhuang Fashion Is Expected To Raise Its Price By 16% In The Second Half Of The Year, And Will Continue To Open More New Branches.

2008/8/28 11:37:00 48

Baozhuang fashion (0589) announced its interim results yesterday, recording a profit attributable to shareholders of 183 million 400 thousand yuan (RMB, the same below), an increase of 28.43% over the same period of 07 years, a profit of 0.32 yuan per share, and a medium-term dividend of 0.21 yuan.

Kenneth Chan, chief executive officer and executive director of the group, said that he is optimistic about the performance of the second half of the year and will continue to open more new branches. The first Armani store operated by the group will be opened in September this year, and the Vivienne Tam store will also implement the expansion plan. By the end of this year, the growth rate of the sales point will reach 4% to 5% by the end of this year, and each branch will invest 80 to 1 million yuan.

Kenneth Chan said at the performance meeting yesterday that the retail group of the group, especially the shops of Baozi and BMW brand, in Asia, became the main driving force of the group's turnover and profits. The retail turnover increased by 28.95% over the same period last year, reaching 607 million 600 thousand yuan.

He said that this increase was mainly due to the increase in the average unit price and sales volume of the products. Due to the increasing number of high income groups in the mainland and the increasing emphasis on quality of life, the demand for high-end products produced by the group was also growing.

　　 中期赚1.8亿增28%

However, he also admitted that the growth of same store sales slowed down from 7 to August due to Olympic factors, but the double-digit growth rate was still recorded.

In addition, the group will consider raising the average price by 16% in the second half of the year, so it is confident that the same store sales growth will remain at the 30% level in the first half of the year.

As for the gross margin, Kenneth Chan pointed out that the OEM products of the group were mainly exported to the US and Canada markets. The market was affected by the slowdown in the US economy and dragged down the gross profit performance in the first half of the year. But he also stressed that the business accounted for a small proportion of the profit and therefore had no significant impact on the overall business.

During the period, the gross profit margin of the group increased from 71.62% in the same period last year to 77.05% through the increase in price and the continuous growth of sales volume.

In expanding the new store, Kenneth Chan revealed that the group increased 12 stores from 7 to August, and the target number of shops increased by 30 throughout the year.

He also said that due to the recent joint venture with Vivianne Tam (VT), the number of shops in the mainland in the first half of next year will increase to 12.

According to introduction, Baozi fashion signed a distribution agreement with Giorgio Armani S.p.A group in March this year, and signed a joint venture agreement with Vivienne Tam group in June. Baozi accounted for 58% of the shares.