Lining Continues To Lose Heavily And Hopes To Turn Over In The Year.

"The initiatives implemented in the past three years have laid a solid foundation." Li Ning Co said. It is precisely in the past three years that Li Ning Co has laid a solid foundation, the company's performance has sustained losses. In 2014, Li Ning Co accounted for a total loss of 781 million yuan for equity holders. This figure was substantially larger than that of 2013, after which the company lost about 1 billion 980 million yuan and 390 million yuan in fiscal 2012 and fiscal 2013 respectively. According to Li Ning Co's explanation, the increase in losses last year was due to the pressure on the annual profits caused by the early investment. The relevant person in charge of the company explained to the Beijing Commercial Daily reporter that due to the input period of the reform, the operation of the store adjustment and other actions resulted in the profit being diluted.

Data show that Li Ning Co last year, including sales costs, distribution expenses and other expenses have risen to varying degrees. Among them, the overall sales cost increased from 3 billion 230 million yuan in 2013 to 3 billion 724 million yuan in 2014. Total distribution expenses increased from 2 billion 674 million yuan in 2013 to 2 billion 864 million yuan in 2014. Li Ning Co explained that the reasons for the rise in Lining's distribution expenses were mainly due to the expansion of the company's direct network. Direct shop The number of stores increased significantly compared with the previous year, and store operating costs, such as store rental costs and store staff costs increased. According to the brand, Lining accounted for 88.2% of the total revenue. The brand increased to 1202 stores directly from retail stores, up 29.8% from the same period last year, while the number of franchised stores decreased by 11.3% compared to the same period last year. Another source in Chen's industry said that the reduction of dealer shops is also the reason for inventory production, and then the profits of diluted companies. Lining has confidence in the new stage of development. According to yesterday's public information, Li Ning Co executive chairman Lining said he hopes to turn around this year.

"At present, the rapid rise of Anta and other brands, and the intensified competition in the sporting goods market, it is not easy for Lining to lose his way. In particular, the company's carding and inventory digestion will continue for a long time." The above industry insiders said. In fact, compared with Lining's losses, many other sports brands have already made good progress in their performance. Public information shows that, according to the first half of 2014 business performance, Anta came from behind, PEAK's performance has been good, in the first half of 2014, Anta has set a revenue of 4 billion 120 million yuan, becoming the first half of the industry sales.

Li Ning Co's stock situation rose to a certain extent last year. The company's inventory in December 31, 2014 was as high as 1 billion 289 million yuan, up nearly 40% from 942 million yuan at the end of 2013. In view of the reasons behind this stock inflation, public information released by Li Ning Co simply explained that the increase in stock was mainly due to the increase in stock prices. Retail business Caused by expansion. "

Insiders told the Beijing Commercial Daily reporter that in addition to the expansion of Direct stores, the reduction of stores such as distributors is also a curse of high inventory. "Even if the dealer stores are closed, enterprises should do repurchase, which will also increase the inventory of enterprises." Chen insiders said.

In the early twenty-first Century, when the clothing industry turned to the channel, the sporting goods industry was the first to benefit. The once expanding Li Ning Co fiercely maintained the title of the king. When the industry was in a downward spiral, Li Ning Co became a more serious injury, and became a prominent one in the problem of closing stores and inventory. Data show that only in 2012 a year, Li Ning Co shut 1821 stores. From the current overall number of stores is still declining, inventory continued high status quo, the impact of inventory inventory on Li Ning Co profits fear short-term. However, the Li Ning Co said its old stock had been reduced, and its share of stocks for more than 12 months dropped from about 40% in 2012 to about 25% in 2014.

Yesterday, Lining The board of directors of the company formally appointed Lining as the acting chief executive, which means that Lining will take charge of the operation of the company. According to yesterday's public information, Lining said that he did not find a better candidate for the time being, and he could lead the company back to the track, but stressed that he would continue to look for new successor.

In fact, Li Ning Co has been more frequent this year. In January, we launched a series of vertical integration measures based on the core category business cluster as the main content. We tried to form vertical integration management from seven aspects of market analysis and commodity planning, so as to make core categories a profit center for driving the company's future development. Recently, the company announced that it will launch a cheap and intelligent running shoes with millet, and the first batch of products will be listed in the three quarter of this year. Now, Lining also plans to open 500 new stores and strategically lay out the South market. But it is worth mentioning that East China, North China and northeast markets have been Lining's dominant sites, and South market is the base of Jinjiang's brand.

In addition, Cheng Weixiong, general manager of Shanghai fashion brand management limited, said that a series of strategic reforms made Lining's governance surface very internationalized. In fact, it was a rigid market reaction mechanism, which was a serious bureaucratic atmosphere of large corporations. Under such circumstances, "gymnastic Prince Lining" once again came to power in the mountains. How to eliminate this bureaucratic atmosphere and how to improve the management mechanism, especially after the departure of two key figures, how to choose the new leader, and become an important problem faced by Lining in internal management. The above industry insiders said.