China Lilang boosts sales and profits
Chinese menswear firm China Lilang boosted sales by nearly a third last year as an aggressive store rollout program continued.
The group’s revenue increased by 29.8 per cent to RMB3.17 billion (US$472.2 million), while net profit increased by 22.9 per cent to RMB751.2 million (US$111.9 million).
The company added 260 Lilanz retail stores during the year, exceeding its target. Same-store sales growth nudged 10 per cent on average across the four quarters.
China Lilang’s chairman and executive director Wang Dong Xing said improved operating conditions and more distinct business advantages resulted in both revenue and profit hitting record highs, with sales growth the fastest in seven years.
“Last year also saw the first year the group started to realise a market expansion after continuous efforts to improve products and channel management, with 260 retail stores added and the average floor area of retail stores increased. The operating efficiency of the group’s retail stores also kept improving.”
According to the firm, the improved performances were primarily driven by the strong order growth at all trade fairs last year. Retail sales of the stores operated by distributors continued to perform well.
As at 31 December last year there were 2670 Lilanz retail stores across Mainland China. Of those, 212 were specialty stores for the smart casual collection, an increase of 123. The aggregate retail floor area of Lilanz retail stores increased by 22.7 per cent year on year to about 379,900sqm.
Looking ahead, China Lilang will steadily continue with its market expansion, targeting to add about 200 stores during the year. New stores for the core collection will primarily be added in third- and fourth-tier markets.
The group plans to increase brand promotion activities, particularly to improve the online brand awareness of Lilanz, and will invest more in increasing traffic to its online stores to further drive sales. This is expected to produce continuing sales growth in the coming three to five years.