"The macroeconomic outlook for the next two years is not optimistic," Sheng Baijiao commented, adding that "the consumer retail market is expected to be under continued pressure due to weak consumer sentiment”, in a clear admission that the slow growth of the economy might impact its earnings in the next two years, after a modest 1% increase in profits last fiscal year.

Belle’s management say that fierce competition in stores and online market are making it difficult for China retailers, but they are expecting robust sales of popular global sportswear brands like Nike and Adidas to cushion subdued performance by their own brand shoes.

"We see some improvement in our same-store sales in March-May quarter as compared to the previous quarter, but (footwear business) in not out of the woods yet," said Chief Executive Sheng Baijiao, adding that the company expects strong brand recognition to help lift same-store sportswear sales by a high-single digit percentage this fiscal year.

Belle International changed its financial year-end date to the end of February from December earlier this year. For the 14 month’s period ending February 2014, revenue rose 10% to 5 092.7 million euros, up from 4 627.4 million euros in the 14 months ended February 2013.

With a network of nearly 20 000 stores strung across China, Belle reported net profit up by 1% to 610.1 million euros for the 14 months ended February 2014, compared with 604.2 million euros in a comparable 14 month's period ended February 2013.


According to the company, licensed sportswear sales accounted for about 39% of Belle's total revenue, with Nike and Adidas were confirmed as having much better brand recognition in China than second-tier clients such as French retail group Kering SA's Puma sports brand and Nike's Converse sneakers. Footwear contributed with 61.3% to total revenue generated in the 14 month's period.

Shares of Belle International Holdings Ltd were last traded at 1.04 euros at Hong Kong Stock Exchange on the 14th of July 2014.

Note - The company posts its financial results in Chinese Yuan Renmimbi (CNY). The official exchange rate of CNY / EUR (8.4566) as reported by the European Central Bank on the 14th of July 2014 was used to convert the numbers.