Mainland Sporting Goods Industry Is Still Not Out Of The Haze, Lining Performance "Bright Red Light"

Inland

Still no way out of the haze, the once brilliant mainland sporting goods boss Lining (02331.HK) is no exception.

Yesterday, Lining issued an early warning of performance. The annual orders showed a drop in the number of high units. It is expected that profits will fall sharply in the first half of this year and the whole year.

The order for 2012 has been completed so far. The fourth quarter of the first quarter ended with a double-digit decline.

Among them, the order value of footwear products showed a low double-digit decline, and the average retail price and order quantity had low unit number and low double-digit decline respectively.

In terms of clothing, the amount of orders has dropped by more than 20%, and the average retail price and order volume have decreased by a few units and more than 20%.

Meanwhile, on the 11 th of this month, Lining Group signed a memorandum of cooperation for the equipment sponsor of the Chinese men's Basketball League (CBA). The agreement covers five seasons from 2012/13 to 2016/17.

Li Ning Co said that the amount and duration of CBA sponsorship contracts will increase significantly in the fourth quarter to the third quarter of 2017. Along with the factors such as impairment of intangible assets of Lotto franchise business and interest on convertible bonds, there will be a significant decrease in pre tax profit and net profit in the first half of this year and the whole year.

In fact, last year, Lining's performance fell sharply.

Lining's net profit decreased by 65.2% to 386 million yuan last year, and its revenue decreased by 5.8% to 8 billion 929 million yuan. Its profit decline was at the end of Anta, XTEP, XTEP and PEAK.

And its inventory amount also reached 1 billion 133 million yuan, an increase of 40.57% over the same period last year, and the stock turnover days also rose from 52 days in the previous year to 73 days.

Now it seems that the high inventory situation has not been improved.

Li Ning Co said in the announcement that competition in sports products industry is fierce, and sales of discount promotions are increasing.

Similarly, the performance has been better in the past one or two years.

In the fourth quarter of this year, the amount of orders also fell sharply. In fact, the amount of Anta orders increased by 15% in the first quarter of this year. But in the third quarter, the amount of orders began to fall.

PEAK (01968.HK) is also facing a similar embarrassing encounter.

In the fourth quarter of this year, orders for footwear products and clothing decreased by 20% to 30%, and the average wholesale price of their shoes and clothing was flat last year.

PEAK expects that the number of stores will be reduced to 7000 by the end of this year, with a reduction of around 10%.

Experienced ten years of rapid development of local sports enterprises, now in the high inventory, declining performance, and even the current situation of price war, we have to slow down, adjust the structure, how to get out of the cold winter quickly, these enterprises are now the subject to do.