January 7th, according to Hong Kong media reports, last year, involvement Lining China's trend is weakening, and the market has seen the mainland movement. brand The end of the high growth period was once triggered. Price of stock Avalanche. The management of the two or three line sports brand is "crying for mercy" in chorus.

According to Hongkong's economic daily, at the end of last year, Lining and China were weakened, and the market thought that the high growth period of the mainland sports brand ended, which triggered the "avalanche" of the stock price once.

Profit degradation Lining reorganization distribution network

Deutsche Bank pointed out that, fundamentally, the profitability of first-line brand retail outlets has been deteriorated over the past 3 years, which has led to a weakening of distributor's business confidence, resulting in slower growth in orders. Looking forward to 2011, whether the rent or salary of the mainland shops is likely to increase, the pressure on retail businesses is increasing.

Lining has already embarked on integrating hundreds of poorly managed retail outlets, hoping to turn the tables. The market is worried that similar store integration measures will spread to other sports brands.

However, the management of the two or three line sports brand is "unjust".

XTEP's pace of opening shop

"Do you see why Adidas is so active in entering the two or three tier city? Why do you suspect that this industry is not going to work?" Chen Yongling, director of capital operation, pointed out that although the operating costs of retail stores are on the rise, the company has always pursued a high discount strategy. Dealers and terminal retailers have larger profit margins, and customers have no desire to open stores, and so on, Adidas said. As of the end of November, the company has opened 250 new stores and is proceeding as planned.

He Ruibo, chief financial officer of XTEP (01368), said most of the retail stores were located in three or four line cities, with rents only accounting for 10% to 20% of income. In addition, he also does not see identification with company growth likely to slow down and remain optimistic this year. He also revealed that XTEP maintained a 10% same store growth in the fourth quarter of last year.