PEAK Has No Large Scale Shop Closing Plan Or Turnover In The Second Half Of The Year

< p > it is reported that PEAK sports reduced its turnover by 37.5% last year. Chief executive Xu Zhihua explained during the visit that the overall economic environment was not ideal, which affected market consumption intention and increased inventory pressure.

Judging from the current inventory digestibility, he reiterated that there was no large-scale closure plan in the short term, and the long-term target remained at more than 6000 retail outlets.

He believes there are signs of recovery in the same store sales and turnover in the second half of the year.

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< p > he stressed that the trend of the whole sports brand market is clear, and sporting goods belong to the basic demand industry, in line with the Chinese people's continuous pursuit of the quality of life.

Overall, he has confidence in this year's sales.

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< p > the company's overseas market accounts for about 13% of the total profit, Xu Zhihua said. At present, the company's overseas expansion plan is smooth, and the income of the Middle East countries is flat.

Last year, the gross profit margin of the company decreased by 2.9% year-on-year, while the gross profit margin of the overseas and mainland markets was similar.

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< p > he stressed that the company's brand has taken a professional line, and the company has reached a long-term partnership with the German basketball team. While tennis has been a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a >, the company has sponsored 15 players in the women's Tennis Federation (WTA).

He disclosed that the sports sponsorship fee last year accounted for 14% of the sales revenue. It is expected that this year's reduction in the annual sponsorship fee will be maintained at 14% or less.

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< p > for the company's large inventory last year, PEAK sports chief executive Xu Zhihua responded that the stock had been digested through the discount of the normal selling price and had adjusted the stock actively. Now the stock turnover period of the footwear business has dropped to 3 months, while the inventory turnover period of < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > business is 5 months, and he hopes to decrease to 3 months' health level in the second half of the year.

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< p > he pointed out that futures generally need to place orders six months ago, while the company's current futures account for about 90% of total sales orders and 30% of spot products. The company will adjust the proportion of futures and cash to 70% spot and 30% futures in the second half of the year.

The order signed by the earlier order club is also in line with expectations.

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< p > Xu Zhihua also said that the company has no specific acquisition plan for the time being, but will actively seek opportunities for expansion.

Last year, the number of business outlets exceeded 70% in third cities in China and less in the first tier cities. The reason is that international sports brands such as Nike and Addidas occupy a higher market share in China's first tier cities, compared with domestic sports brands in third tier cities.

He said that no matter how the company's performance is, it will maintain a dividend payout ratio of 30%.

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