Meck International Sports Shoes Apparel Stocks Soared, Headquarters Want To Buy Back

We bought a batch of unsalable stocks sold over a year ago, and the repurchase amount involved about 92 million yuan. Because of the need to make provision and export sales with a large discount, Merck international expects to see a decline in its financial performance this year.

Last year alone, Meck's stock grew by rocket 75.2%. The amount of stock increased from 77 million 700 thousand yuan to 136 million 100 thousand yuan, and the inventory turnover days increased from 51.3 days to 92.4 days, almost doubled. In the same period, group revenue also decreased by 11.1% to 633 million yuan, and gross margin decreased by 1.5% to 33.3%.

The stock growth rate of Meck international is at a high level in several major listed sports brands. Apart from the increase of 81.80% in last year's inventory value, the second place is Meck international. The growth rate is far higher than that of Lining's 40.57%, Anta's 36.21%, XTEP's 45.17% and PEAK's 25.73%. Inventory turnover days are 92.4 days longer than those of other brands, and three months are running out.

In fact, the inventory problem has been kept. Meck International "Nerve racking." Merck international went public in February 2010, but in the second half of this year, a large number of stocks began to run out of stock and inventory problems had not been effectively resolved.

Meck said that the stock of the repurchase was mainly sold to distributors in the second half of 2010 to the first half of 2011. Gym shoes And sportswear, the group will buy back at the original price of 8% off, which accounts for about 14.5% of the 2011 annual income. Due to the provision of repo stock and a substantial discount to overseas customers, the group's annual financial performance is expected to decline as at the end of this year.

Through this time buy-back Meck points out that it hopes to strengthen its cooperative relationship with distributors, as well as its influence on retail channels, and plans to further integrate with distributors to integrate smaller or less efficient stores.

By the end of 2011, Meck had 20 distributors to manage 1859 stores. However, the 1859 stores are not the highest peak of Meck international store data. Since last year, the group has begun to integrate stores and slow down shop opening.

Actually, Meck is not the first sports brand to buy back stock. As early as last year, Lining announced the first time that he will spend 300 million yuan to repurchase inventory in the year. A day later, China's trend also announced that in the first half of last year, it spent 200 million yuan on inventory repurchase. For sports brands with stock top down, this initiative to adjust the stock structure will bring more impetus to enterprises.