CHINA: Belle International warns of tough times ahead
- Net profit for 14 months to 28 February up 1% to RMB5.159bn
- Revenues up 10.1% to RMB43.067bn
- Warns of “weak consumer sentiment” for next two years
Apparel and footwear business Belle International Holdings is warning of a tough two years for the Chinese market, despite a double-digit revenue rise in the 14 months to February.
The company, which has shifted its year-end from 31 December, said footwear revenues were up 5%, while sportswear and apparel rose 19.1%.
The increases, it said, were caused mainly by the consolidation of newly acquired businesses and same store sales growth, but warned that broader macro-economic factors were continuing to impact business.
“With the [Chinese] economy continuing its structural rebalancing and slower growth becoming the new normal, consumer confidence has been low and consumer sentiment weak,” said Belle International, which distributes Nike and Adidas in China.
“The macro-economic outlook for the next two years is not optimistic. The consumer retail market is expected to be under continued pressure due to weak consumer sentiment.”
Sales had also been affected by an unusually warm winter and cold spring, the company said, highlighting rising costs, especially staff-related expenses.
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
The most-read stories on just-style this week include a roundup of US apparel retailers' comparable store sales in April, Nike pledging to expand its US manufacturing operations if the TPP agreement ...
2013 was marked by a strong investment by Nike in the Portuguese territory. Beyond the opening of important stores, Nike has been dedicated to increasing its penetration throughout a vigorous marketin...
Executives from sportswear giants Adidas and Nike, as well as mail order firm Otto Group and Everest Textile Company, are set to speak at this year's World Textile Summit....
Nike Poland has a strong position on the Polish apparel market and it is expected that its share will increase further in the forecast period. The company will continue to be positioned as a premium b...
Nike Turkiye AS endorses various sports, such as the Nike Run Istanbul and Nike Turkey Made by Movement campaigns in 2013. Nike used Nike Run Istanbul to get a non-running nation thinking and talking ...
- Why have US FTA imports fallen to a record low?
- Collaboration key to the future of smart textiles
- Synergies Worldwide CEO unravels sourcing shifts
- First figures show Bangladesh exports climb
- Rana Plaza three years on – Timeline of change
- Hanesbrands to buy Pacific Brands for $800m
- BHS receives "expressions of interest"
- New loan deal to help upgrade Bangladesh factories
- Timberland sets new eco-preferred standards
- US Q1 in brief: Carter's, Columbia Sportswear, Ske