BELLE Continued To Close 276 Stores In The Two Quarter

September 9, 2016 report:

International Holdings Limited (1880.HK) today announced the two quarter of China's mainland retail business data.

In 6-8, group domestic

The same store sales fell 10%, a drop narrower than the 16.5% in the 16% quarter and four quarter of the first quarter, but higher than 7.7% in the same period last year, which has not been able to grow since the fourth quarter of the 2014 fiscal year.

While the sports and clothing business maintained a stable median sales growth in the same store, an increase of 6%.

BELLE international chief executive Sheng Bai Jiao said in July that the group had begun to pform its store structure according to its brand and positioning.

During the two quarter, the group continued to shut down and reduced 276 stores. As of August 31st, there were 20600 retail outlets in China, 13384 of which were footwear stores and 7216 were sports.

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BELLE International (1880.HK) closed 5.18% on Friday, down 0.38% all day.

So far, the stock has fallen by 11.3% in 2016.

2013 is the most sluggish year for the footwear industry. Even the industry giant Bai Li International Holdings Limited (hereinafter referred to as BELLE) can not escape the fate of net profit. In pursuit of new profit growth points, it has finally made up its mind to cross the border into the field of women's clothing. Through its wholly owned subsidiary, pun Guan Co., Ltd. purchased a 31.96% stake in Japanese apparel retailer Barok (Baroque) from CLSA Sunrise Capital and L.P. for 93 million 960 thousand US dollars (about HK $733 million).

The latter is Barok's largest shareholder.

BELLE will also set up a series of joint ventures with Barok by wholly-owned Affiliated Companies Zhuo Co., Ltd. to open up clothing and accessories business in China.

The total amount of the above two investments is not expected to exceed HK $924 million.

One of BELLE's international shareholders, CDH investment, also acquired 23% stake in Barok.

BELLE has been involved in the field of inexperienced women's clothing under the condition of a sluggish footwear industry. It has the suspicion of being out of business, but it is estimated that BELLE is finally determined to start women's clothing business under the pressure of sustained growth in performance.