Shenzhen ELLASSAY Fashion Co., Ltd. (SH:603808) announced a significant increase in its annual performance for 2023. The company expects a revenue of 2.9 billion yuan, marking an increase of 20% to 25% compared to the same period in 2022, setting a new historical high. Additionally, the company’s net profit attributable to the parent is projected to be between 100 and 130 million yuan, a substantial increase of 388.95% to 535.64% year-on-year. Excluding the impact of provision for goodwill impairment, the net profit attributable to the parent would be between 200 and 230 million yuan, an increase of 878% to 1025% compared to the previous year.
The provision for goodwill impairment is mainly due to the impact of ongoing inflation and geopolitical situations in the European and American markets, which significantly weakened consumer demand. This adversely affected the performance of the company’s IRO Paris brand overseas, falling short of expectations for the year. Given the continued macroeconomic pressure in Europe and America, the company anticipates a decline in the future profitability of the IRO Paris brand in these regions. Therefore, the expected provision for goodwill impairment is about 90 to 100 million yuan.
Since 2020, ELLASSAY’s international multi-brand matrix has made significant breakthroughs in the domestic market. In 2023, all brands under the company achieved growth, particularly the self-portrait, Laurèl, and IRO Paris brands, which performed exceptionally well in the domestic market.
By the end of 2023, the company expects to have approximately 651 stores, of which 503 are directly operated, an increase of about 43 stores from the beginning of the year. At the end of 2021, the company had 550 stores, with 380 being directly operated, indicating an increase of about 123 direct stores over two years.
| Source: Official Announcement, Press Release
| Image Credit: Company Website
丨Reporter: Wang Jiaqi
| Editor: LeZhi
