Po'S Profits Are Declining, But European And American Luxury Goods Are Not.

The near future,

The group released the interim results as of June 30, 2014, showing that the company's operating income in the first half of this year was 965 million yuan (RMB, the same below), compared with 1 billion 76 million yuan in the same period last year, down 10.3%.

Operating profit fell by 47.3% to 205 million yuan on average, and net profit was 54 million 965 thousand yuan, a sharp decrease of 60.7% compared with the same period last year, with a diluted earnings of 0.10 yuan per share.

Gross margins fell slightly by 40 basis points by 81.5%.

Among them, retail revenue is due to China's luxury market.

Weak and reduced by 10.1% to 976 million yuan, other income down 11.8% to 99 million 500 thousand yuan.

At the end of the first half of this year, the Group operates 327 retail outlets in mainland China, Hongkong, the United States and Canada, a decrease of 25 compared with the same period last year.

Tang Xiaotang, an analyst with luxury goods and apparel retailing industry, said, "the downward trend of baozi group reflects the common phenomenon of the whole domestic women's clothing business.

After a large-scale entry into China, the price is not as fast as that of the fast fashion brand, and the brand is not as competitive as the European and American luxury brands.

It is understood that in February this year, Milan fashion week, Baozi group international brand Ports 1961 launched handbag business, while continuing to release men's and women's wear. However, Ports 1961 only accounts for a very small share of the group, unable to improve its overall performance, while Ports 1961 business has suffered setbacks. From the end of 2012 to the beginning of 2013, 1961 Ports has closed its independent stores in Losangeles and Toronto.

Tang Xiaotang said that the international strategy of Ports 1961 has been very difficult to achieve. At present, the general recognition of baozi is already a domestic brand. Besides, "baozi's positioning is high and medium end, but consumer groups have long been doubtful."