In August 29th, La Natsu Bell announced a semi annual report, such as market expectations, La Natsu Bell's semi annual report "not very good-looking".

Semi annual data showed that in the first half of 2019, La Natsu Bell's operating income in the first half of the year was 3 billion 951 million yuan, a decrease of 9.78% over the same period last year, and a net loss of 498 million yuan, down 311.2% from the same period last year. Meanwhile, La Natsu Bell's retail outlets decreased by 2470 in the first half of this year, a net decrease of about 26.65% from the end of last year.

According to the financial report, in the first half of the year, La Natsu Bell is cutting the store and disposing of assets. Will these measures lead the company out of the predicament?

Decline is hard to pull.

The decline in La Natsu Bell's performance did not begin this year.

The company's 2016 annual report shows that net profit for the whole year is 532 million, down 13.54% compared with the same period last year. In 2017, the net profit was 498 million yuan, down 6.29% again. By the end of 2018, La Natsu Bell had lost money and lost 160 million yuan.

By the first half of this year, La Natsu Bell's net profit deficit has expanded to 498 million yuan.

For the reasons for the loss in the first half of the year, La Natsu Bell said that first, the company accelerated the digestion of the seasonal products, resulting in a decrease in gross profit margin compared with the same period last year, and a corresponding decrease in sales gross profit. Two, the implementation of the new leasing criteria had a net profit of -4461 million yuan; three, the actual effect of the adjustment of the company's business transformation, the reduction of capital and efficiency and so on still need a certain amount of time to be gradually reflected. The reduction in the cost of the period could not offset the impact of gross profit decrease, and the fixed cost was higher, and the corresponding decrease ratio was smaller than the decline in the income.

La Natsu Bell, a multi brand and direct battalion oriented company, is facing enormous difficulties in the gradual increase of operating costs such as labor and rentals. To get out of this predicament smoothly, La Natsu Bell must change.

Keep 6000 stores within

According to the semi annual report, La Natsu Bell has established the brand differentiation development direction with the core of the main women's clothing brand as the core, and contracted the development scale of the men's clothing brand Pote, JACK WALK and MARC ECK, and retained the core shops and integrated men's clothing team to improve the investment return of the resources.

Coupled with the company's June delivery of the French Naf Naf SAS women's wear brand, La Natsu Bell's future goal is clear: to focus on the development of the special women's clothing brand, and to shrink the scale of other brands, and to increase profits in an efficient way.

In order to reduce expenses, La Natsu Bell chose to close inefficient and loss stores to improve the serious problem of losses. By the end of June 2019, the number of retail outlets in the company was 6799, which was reduced by 2470 retail outlets compared with the end of last year, with an average closing of 14 stores next day.

Closed shop measures will continue, La Natsu Bell said that the three quarter of the company will continue to implement offline retail outlets optimization strategy, plans to retain 6000 domestic business outlets, improve single store operation efficiency and profitability, the main business is expected to enter a more benign development track in the fourth quarter.

In addition, in order to further optimize the company's internal assets structure, the company also disposed of some assets in the first half of this year. For example, the company's 54.05% stake in Hangzhou and the 98.04% share of the Tianjin star enterprise management consulting partnership (limited partnership) have completed the transfer.