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Troubled companies to develop high inventory
Date: 2011.05.16 | Category: wholesale jewelry | Tags: Gucci Jewelry,Juicy Necklace Nike Free 5.0 running Shoes,Pandora Bracelet,Thomas jewelry

In this regard, some analysts believe that the net profit lower than expected on Saturday, largely with the company’s high inventory problems. As for the problem of high inventory, Saturday’s solutions to increase sales efforts on the one hand, for some slow-moving items as soon as possible by way of sale realized the other hand, sales team from this year’s assessment of first-line sales inventory control indicators have been added to control the volume of equipment. Reporter has learned that on Saturday the annual sale will be held both winter and summer fairs.
Analysis, said early Saturday as stores adjusted cost of silver jewelry sales, inventory management and income tax rate adjustment, the cumulative number of factors have combined to create a performance in 2010 fell on Saturday, with the latter part of the rapid release of sales and income tax rate factors elimination from the 2011 results will appear in Saturday matches and income growth more.
In addition to the decline in net profit, the problem of inventory turnover on Saturday, has been plagued companies. According to analysis, the first quarter of Saturday’s inventory turnover rate was only 0.28. In fact,Gucci Jewelry stock issues has been plagued the development of a major problem on Saturday Nike Air Max 95 Women, how to digest inventory is a challenge must be faced on Saturday.
Saturday 2010 annual report, 573 million yuan last year nike free run women, inventory, total assets of 31.88%, 28.15% higher than 2009. As of last year, the company from 2008 to 2010, there have been three consecutive years of negative operating cash flow. For the high inventory, Saturday side said that growth in the number operated stores and new stores opened for the proposed reserve stock is the main reason for the high inventory.
Rapid expansion, while net profit fell on Saturday, also facing the “labor pains.” According to the 2010 annual report on Saturday, its cost of sales growth last year, 116,747,400 yuan, of which all costs for the channel development of about 60 million. Affected cheap nike free, although its operating income last year, although the growth of its 29.91%, operating profit fashion jewelry achieved only 3.43% growth in net profit is down by 11.87%.
And in the first quarter, operating income of 328 million on Saturday, an increase of 24.94%, operating profit 033 million Cheap nike air max 2011, an increase of 16.51%. In response nike free 5.0 running shoes, industry analysts believe that, on Saturday net profit growth is slower than operating income growth was mainly due to a significant increase in cost of sales and business tax increases and reduced operating income in the year.
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