Core Viewpoint - The recent financial report from Peacebird indicates a significant decline in performance, with revenue and profit sharply decreasing, suggesting the company is struggling to maintain its previous market position [2][4]. Financial Performance - For the first three quarters, the company's revenue decreased by 7.15% year-on-year, amounting to 4.217 billion yuan [5]. - The net profit attributable to shareholders plummeted by 73.79%, recording only 28 million yuan [6]. - The non-recurring net profit saw a drastic decline of 467.30%, resulting in a loss of 55 million yuan, highlighting severe challenges in core business profitability [7][8]. Store Operations - As of the end of the third quarter, Peacebird closed a net total of 264 stores, including 54 direct-operated and 210 franchised stores, bringing the total store count down to 3,109 from a peak of 5,214 in 2021 [10][11]. - The company opened 240 new stores during the same period, but the number of closures far exceeded openings [10]. Sales Channels - The apparel operation segment contributed 4.156 billion yuan in revenue, accounting for 98.55% of total revenue, with all major brands experiencing revenue declines [9]. - Despite a 4.48% year-on-year decrease in offline sales, it still generated 3.151 billion yuan, representing 75.83% of the apparel segment's revenue, and maintained a higher gross margin compared to online sales [10]. Cost Management - Total operating costs for the first three quarters were 4.172 billion yuan, down 6.41% year-on-year, but selling expenses increased by 2.86% to 1.89 billion yuan, indicating inefficiencies in converting sales expenses into revenue [11]. Historical Context - Peacebird's performance decline has been evident since 2022, with a significant drop in revenue and profit following a peak in 2021 when it first surpassed 10 billion yuan in revenue [12][13]. - The company has been undergoing a transformation to focus on quality over quantity, closing underperforming stores and aiming to enhance profitability [14]. Founder and Market Position - The founder, Zhang Jiangping, has seen a decline in personal wealth alongside the company's struggles, having previously ranked on wealth lists but now absent due to the company's market performance [15][24].