Hongkong Lies Dan Q4 Retail Sales Fell, Same Store Sales Fell 18.5%

In March 9th, Hongkong famous shoe shoe brand Lies Dan Holdings Limited released the unaudited retail business data for the 3 months ended February 29, 2020 (the fourth quarter of fiscal year 2019/20).

Data show that in the fourth quarter of fiscal year 2019/20, Lies Dan's self retailing business decreased by 30.9% compared with the same period last year, while the same store sales fell by 18.5%, excluding e-commerce business. The total sales volume of e-commerce business increased by 7.2% compared with the same period last year.

During the reporting period, the group had 441 retail outlets in mainland China, Hongkong and Macao, with a net decrease of 85 compared with the same period last year. These include 390 self operated shops located in the mainland of China, Hongkong and Macao, and 51 franchised stores located in the mainland of China.

In addition, Lies Dan said that the recent outbreak of the new coronavirus (COVID-19) epidemic ("epidemic") had adverse effects on the sales performance of the group since late January 2020 to the end of February. As we can not determine how long the epidemic will last, the group is still undertaking the assessment of the risks and potential negative effects of the epidemic.

It is understood that Lies Dan operates in a vertically integrated business mode, and designs, develops, produces and sells men's shoes, handbags, handbags and accessories in mainland China, Hongkong and Macao. Its main proprietary brands include lesaunda, lesaundaMEN, LINEAROSA, PITTIDONNA and CNE, with different positioning products.

In fact, Lies Dan's performance decline has been shown in the performance of last year's financial year, and the same store sales have declined continuously, and profits have fallen into losses. According to Lies Dan 2018/19 financial year results, due to the integration of retail stores and the same store sales, the group's overall revenue fell 19.6% to 908 million 800 thousand yuan (2017/18: 1 billion 130 million 600 thousand yuan), while same store sales fell 13.2% compared with the same period last year (2017/18 decline was 11.3%). The annual non core revenue decreased significantly, and the total loss of the company's equity holders was RMB 28 million yuan (59 million 700 thousand yuan in 2017/18).