Despite Poor Performance, La Natsu Bell Is Still Crazy About Opening New Stores.

Recently, La Natsu Bell released the 2018 annual performance reduction notice. The company's net profit attributable to shareholders of Listed Companies in 2018 was reduced by 458 million 527 thousand yuan over the 2017 year, down by about 91.98% from the same period last year.

It is estimated that the net profit deducted from non recurring gains and losses of shareholders of Listed Companies in 2018 will be reduced by 414 million 823 thousand yuan over the same period of 2017, down about 109.21% from the same period last year.

Previously, the three quarterly report showed that La Natsu Bell received 116 million yuan of government subsidies in the first three quarters of 2018.

Despite poor performance and share price slump, this does not affect La Natsu Bell's crazy sales in the national market.

Data show that at the end of 2015, the total number of outlets in La Natsu Bell was 7893, which increased to 9674 at the end of June 2018, with an increase of 22.6%.

The expansion of the dot led to a sharp increase in La Natsu Bell's stock. As at the end of September 2018, the stock of La Natsu Bell was 2 billion 700 million yuan, up nearly 1 billion yuan compared with the 1 billion 756 million yuan at the end of 2015.

In recent years, the tide has been updated rapidly, and the competition in the garment industry is fierce.

The major brands are competing for the layout of electricity providers and new retailers, and the impact of online consumption on the clothing retailing industry has been increasing. The turnover of La Natsu Bell's local brand has declined in recent years.

However, according to the 2018 store data, on the one hand, La Natsu Bell is constantly opening new stores, and on the other hand, it is also closing stores. Data show that between January 2018 and September, 1228 new stores were opened by La Natsu Bell, and the total number of stores increased to 9625. However, when opening new stores, 1051 stores closed, and the total number of stores increased little. The number of stores increased by 177.

With regard to the continuous opening of shops, La Natsu Bell said that with the increasingly fierce market competition in the first tier cities and the increase of the income and consumption power of the two or three line urban residents, the international fast fashion brands gradually shifted from the past one tier cities to the "two or three tier cities" in the past, especially in the central cities and the satellite cities surrounding the medium-sized cities.

La Natsu Bell announced in December last year that he would raise funds totaling no more than 1 billion 170 million yuan for 4 projects, including expansion of retail network, upgrading of stores, intelligent store construction, and construction of logistics center.

The consequences of rapid expansion are also beginning to appear. According to the 2018 semi annual report, the cash flow generated by business activities is -2.56 billion, which is the first time in recent years.

However, with the traffic dividend reaching the top, Taobao and many other e-commerce giants began to exert a strong impact on the sinking market. H&M, ZARA and other international fast fading brands also began to try to sink the channel, and La Natsu Bell faced increasingly fierce market competition.