Open F2F class notes 21st September (Christian)h

just staying at home= Just stayed at home

Original

I will introduce the DUN financial performance in FY17 from the 3 points below:
First, let’s review the financial performance of YTD Aug,17 and LE Sept,17
From the chart below, although the operating result was in line with BU17, but the gross margin for YTD Aug only achieved 12 percent of BU17. The main reasons were that lower sales and higher destruction cost which due to that we wrote off some old stocks in July. As the Duke project, at the end of Aug, we totally closed 19 stores, so that was the reason that the S&D expense was lower than BU17. It mostly behaved in personal cost, depreciation cost and rental.
The operating result for LE Sept is very higher than BU17, the reason is that LE Sept includes all the expenses which are related to Duke Project.
Second, let me introduce Duke Project. According the brand HQ’s instruction, we will close some small stores and maintain some key stores for retail business and will terminate Wholesales business. Below chart is the mainly expensed.
For retail, it include 2 aspects. One is that the btq closure will be happened some expenses, like reinstatement fee, severance fee, lease penalty, fixed assets disposal and so on. Another is the stock wrote off.
For wholesales, it includes stocks buy buck and stock destruction cot.
For office, the main expenses is staff severance fee.

edit

Good Afternoon everyone and thank you for attending.

My name is Haley ling and I manage financial planning and analysis for Dunhil, today I will give you an overview of  DUN financial performance in FY17 based on the 3 points below:

( one one slide)

(first slide)

An overview of financial performance YTD aug 17 and LE Sept 17

The new Duke Project

 An update on our current Network
Firstly, let’s review the financial performance of YTD Aug,17 and LE Sept,17.From the chart below, although the operating result was in line with BU17, the gross margin for YTD Aug only achieved 12 percent of BU17.

This was due to lower sales and higher destruction costs which caused write- offs of some old stock in July. With the Duke project beginning at the end of Aug, we closed 19 stores in total. Thus resulting in lower  S&D expenses compared to BU17.  The reason behind this was the reduction in personal costs, depreciation costs and rental costs.
The operating result for LE Sept is much higher than BU17, the reason behind this is that LE Sept includes all the expenses which are related to the Duke Project.
Secondly, let me introduce the Duke Project. According to the brands HQ’s instruction, we will close some small stores and maintain some key stores for retail business and will terminate our Wholesale business. The chart below shows the main expenses.
For retail, it includes 2 aspects. The first one being that the btq closure will require some expenses, such as reinstatement fees, severance fees, lease penalty, fixed assets disposal and so on. Another is the stock write off fee.
For wholesales, it includes buying stocks back and stock destruction costs.
For the office, the main expenses are related to staff severance fees.