Belle International profit down 3.4pc on lower traffic
Leading mainland footwear retailer Belle International said its first half net profit fell 3.4 per cent as lowered traffic in malls and department store, which Belle relies on for distribution, hurt the company’s bottom line.
Belle owns mid-range brands like Staccato, Joy & Peace and Millies, in addition to distributing foreign brands, such as Nike, Adidas, and BCBG.
It posted a net profit of 2.17 billion yuan in the first six months of 2013, slightly above consensus forecast of 2.2 billion yuan (HK$2.8 billion) compiled by Bloomberg, and against profit of 2.24 billion yuan the same period last year.
“I noticed that some of its products under different brands are starting to overlap in styles,” said an analyst who preferred not to be named. “It seems like the different brands of Belle are starting to compete between themselves so its growth might slow down.”
Shares of Belle International closed Friday down 3.5 per cent at HK$10.42, compared with a 0.15 per cent fall on the benchmark Hang Seng Index.
