Bosideng International revenues slide 11.7 percent in 2013

REPORT_ Bosideng International, announcing its annual results for the year ended March 31, 2014 said that revenue for the year amounted to approximately 8,237.9 million Chinese Yuan (1,324.7 million dollars), a decrease of 11.7 percent as compared with the previous year.

During the year, revenue from the branded down apparel business and the OEM management business decreased by 14.6 percent and 7.8 percent respectively, while revenue from the non-down apparel business i

ncreased by 1.9 percent. These three businesses accounted for 73.5 percent, 10.7 percent and 15.8 percent of the group's total revenue respectively.

The Hong Kong headquartered group's gross profit margin for the year remained stable at 50 percent. Nevertheless, operating profit fell due to the decrease in overall revenue and increase in operating expenses due to the expansion of self-operated stores during the year. Operating profit margin was 10.5 percent against 13.6 percent for the previous year.

Commenting on the results, Gao Dekang, Chairman of Bosideng, said, “China's apparel industry in 2013 had gone through the most challenging times in the decade. The business of down apparel was also affected by macroeconomic environment and faced with the general issues and challenges of the apparel industry. On the other hand, the temperature in autumn and winter last year was exceptionally high, which also affected the sales of down apparel. Capitalizing on its brand advantages throughout the years and its high market penetration, Bosideng maintained its leading position in the industry amidst the challenging environment.”

Sales volume of branded down apparel, which included the non-seasonal products of the branded down apparel, decreased by 17 percent. Sales of the Bosideng branded apparel remained the largest contributor and contributed 66.9 per cent to the total branded down apparel revenue. Snow Flying contributed 16.9 percent, Combo and Bengen revenue represented 7.5 percent and 5.7 percent of the total branded down apparel sales, respectively.

As of 31 March, 2014, the total number of stores of down apparel business recorded a net decrease of 1,357 to 11,652. The Group streamlined and adjusted its sales channels during the low season, thus the number of third party distributor stores recorded a net decrease of 2,083 during the year to 7,829. The number of self-operated stores has increased by 726 to 3,823, which accounted for 32.8 percent of the entire retail network.