Kappa’s retail sales fell by 30% last quarter, closing 80 stores a year
On April 17, China Dongxiang (Group) Co., Ltd. (hereinafter referred to as “China Dongxiang”) released its operating conditions for the fiscal year 2019/20.In the 12 months ended March 31, 2020, China Dongxiang’s total retail sales recorded a low single-digit growth. Among them, offline revenue recorded a low-medium single-digit decline, and e-commerce revenue recorded a high growth of 20% -30%.From the fourth quarter, the retail sales of China’s Dongxiang were affected by the epidemic. The retail sales of its core brand Kappa (excluding Kappa children’s clothing and Japanese business, the same below) decreased by 20% -30%, and its offline revenue decreased by 30% -40%, E-commerce revenue fell by 10% -20%.As of the end of the reporting period, the number of Kappa brand stores was 1,129, a net decrease of 80 compared with the same period in 2019.With the improvement of China’s epidemic situation, 98% of Kappa stores have resumed operations.Even so, China Dongxiang said that the next step will continue to increase the intensity of closing inefficient stores.It is reported that China Dongxiang is the parent company of sports brand Kappa and Japanese skiwear brand Phenix, and has the right to sell Mizuno in China, but the specific sales of Phenix and Mizuno no longer appear in the announcement.China Dongxiang said that the long-term group’s localization strategy of orderly integration of the sales team. Since 2020, in addition to the continuous Ole channel and promotion of the Luyu region to continue steady growth, the offline business performance of Central China, West China, and South China has alsoObviously improved.In the future, the Group will continue to deepen the policies of the local sales team, accelerate the flow of omni-channel goods, reduce inventory levels, and better connect products to the consumer market.Sauna, Ye Wang Liu Jiaqi Picture Kappa Weibo screenshot editor Li Zheng proofreading Liu Baoqing