Profit fall of 19.8pc for Belle International
Footwear and sportswear group Belle International has reported a 19.8 per cent profit fall for the six months to August, on revenue up 0.9 per cent to RMB19.526 billion (US$2.88 billion).
Its unaudited figures show an operating profit of RMB2.278 billion, a decrease of 19.8 per cent year-on-year.
Footwear sales declined by 12.7 per cent to RMB8.59 billion for the six months, but revenue from its sportswear and apparel business grew by 14.9 per cent to RMB10.94 billion, with both same-store sales growth and new store openings.
Belle International and its subsidiaries manufacture, distribute and retail footwear, sportswear and other apparel. The group’s revenue is mainly derived from customers in China.
Company-owned brands of the footwear business include Basto, Belle, Joy & Peace, Mirabell, Senda, Staccato, Tata and Teenmix, while distribution brands include Bata, Caterpillar, Clarks, Hush Puppies and Mephisto.
Most of the sportswear and apparel business is in the form of retail distribution, including brands like Adidas, Converse, Moussy, Nike, Puma and Replay.
Shifting style preferences of consumers are putting structural pressure on the fashion footwear business, says the group. Facing such critical challenges, the group has been making fundamental changes – “a time-consuming process that cannot be completed overnight”. These include a revamp of the supply chain model and an overhaul the group’s eCommerce strategy.