Textile and apparel exports are weak, and the performance of most men’s clothing brands is “cold”
Some experts pointed out that the fabric workwear industry is in a downturn, traditional offline retail has not yet picked up, and the growth rate of online retail has gradually slowed down.
Recently, listed men’s clothing brands such as Jiumuwang and Busen have announced their third-quarter financial reports, with Septwolves and George White leading the revenue growth. Some experts pointed out that the fabric workwear industry is in a downturn, offline traditional retail has not yet picked up, online retail growth has gradually slowed down, and fabric workwear exports are still weak. This is the current situation of the fabric workwear industry.
Revenue increased slightly but net profit declined
On October 24, the third quarter report released by Septwolves showed that the company achieved operating income of 1.79 billion yuan in the first three quarters, a year-on-year increase of 1.29%; the net profit attributable to shareholders of the listed company was 169 million yuan. , a year-on-year decrease of 7.16%. The announcement estimates that there will be fewer orders from customers at the 2016 trade fair, so this year’s performance is expected to be lower than the same period last year.
However, the semi-annual report released by Septwolves shows that the company achieved operating income of 1.144 billion yuan from January to June 2016, a year-on-year increase of 1.24%; the net profit attributable to shareholders of the listed company was 105 million yuan, A year-on-year decrease of 5.63%. It can be seen from the financial reports of the past three years that continued performance decline has become the norm for the Seven Wolves. Since net profit reached a peak of 561 million yuan in 2012, Septwolves has begun to decline. Net profit in 2013 was 379 million yuan, a year-on-year decrease of 32.44%. This was the company’s first performance decline since its listing. In 2014, net profit was 289 million yuan, a year-on-year decrease of 23.84%. In 2015, Septwolves achieved a net profit of 273 million yuan, a year-on-year decrease of 5.43%. In its previously announced performance forecast, Septwolves stated that the company received fewer orders from customers during its 2016 trade fair. The company’s poor performance in the past three years is because it is in the process of adjusting to the transformation and reform of its wholesale model, which has affected the revenue and profits of its original business.
A reporter from China Business Daily learned that Septwolves has determined the development strategy of “main business + investment” and proposed to transform from pure industry to an “industry + investment” operating model to create a “fashion group”. Build a large fashion consumption ecosystem of Septwolves. Septwolves said that the company is eliminating ineffective stores, adding missing stores, adjusting store positioning, and trying new store operation models. Statistics show that in 2015, the total number of Septwolves stores was about 2,300, including 400 directly operated stores. Compared with 2,821 stores in 2014, more than 400 stores were closed.
In addition to the Seven Wolves, the third quarter report recently released by George Bai showed that the company achieved operating income of 517 million yuan in the first three quarters, a year-on-year increase of 15.66%; in the third quarter, it achieved operating income of 158 million yuan, a year-on-year increase of 15.66%. An increase of 12.98%. The announcement stated that the company’s sales channels for student uniforms have been further expanded, and orders for student uniforms and professional attire have increased. The company is optimistic about the company’s layout in the field of mid-to-high-end student uniforms and continues to pay attention to the expansion of student uniform channels. According to estimates, the size of my country’s student uniform market exceeds 90 billion yuan. However, the current market still shows fragmented competition, lack of leaders, and difficult market development. At the beginning, George Bai’s student uniform business was mainly promoted through the model of finding agents, but the promotion effect did not meet expectations. In the future, it may be through the integration of scattered regional student uniform companies with education system resources, copying the development path of professional attire, or grafting Other education system channels, thereby driving the rapid advancement of the student service business.
Channel transformation is imperative
On October 25, the third quarter report released by Busen Clothing Co., Ltd. showed that Busen Group’s total assets reached 648 million yuan, a year-on-year decrease of 5.28%; operating income was 93.7 million yuan, a year-on-year decrease of 5.28%. A decrease of 20.48% in the same period last year, and operating profit decreased by 200.53% compared with the same period last year. Starting from 2012, Busen Group’s performance began to decline year after year, with a loss of over 100 million yuan in 2014. Although it turned a profit in 2015, it began to decline again in 2016.
At the same time, it can be seen from the first three quarter reports disclosed by the domestic high-end men’s clothing brand Xiangxiniao that from January to September, the company achieved operating income of 1.344 billion yuan, a year-on-year decrease of 14.22%; it belongs to the listing The company’s shareholders’ net profit was -100 million yuan, a decrease of 160.92% compared with the same period last year. According to the announcement, due to the continued deterioration of the terminal retail market, the orders of franchisees of the main brand Angel Bird, which accounts for a large proportion, have dropped significantly; due to the decline in sales and the shrinkage of the brand, which has led to a backlog of inventory, they have been forced to increase their inventory digestion efforts, resulting in a large one-time loss. ;Due to the rigidization of labor expenditures, increased marketing support and some brand investment periods for brand marketing.��, leading to an increase in overall spending. The net profit in 2016 is estimated to be in the range of -390 million yuan to -300 million yuan. Relevant research reports and analyzes have pointed out that the sluggish workwear retail industry, high inventory, and traditional expansion channels are no longer effective, which are important reasons for the decline in performance of Baoxiniao in the past three years.
It is understood that in the face of the cold winter in the workwear industry, Santa Claus has adopted diversified transformation to boost performance. In 2014, it entered the Tmall flagship store and deployed online sales channels.
According to the third quarterly report released by Heilan Home Co., Ltd., from January to September this year, the company’s operating income was 12.067 billion yuan, a decrease of 9.01% from the previous quarter. Although Heilan Home’s net profit in the third quarter dropped sharply from the previous quarter, it added a large number of stores and hopes to solve its inventory problem in an “alternative way”. The financial report shows that Heilan Home opened a total of 972 stores in the first three quarters, of which its subsidiary brand Heilan Home added 2 directly-operated stores and opened 722 new franchise stores and shopping mall stores; its brands Aituju and Haiyiyi all opened new stores. Added more franchise stores and shopping mall stores.
According to reports, as of the end of 2015, Heilan House had an inventory of up to 9.5 billion yuan. The company bought out more than 20% of the inventory, and the remaining inventory can be returned to suppliers. Therefore, high-pressure Inventory still has little impact on the company. Heilan Home stated that it will consolidate its stores to adapt to the company’s current development needs.
Youngor, another listed men’s clothing brand, announced its third quarter report. From January to September 2016, it achieved operating income of 10.519 billion yuan, a year-on-year decrease of 14.95%. In the third quarter, the workwear sector achieved operating income of 2.96 billion yuan. , a decrease of 5.50% compared with the same period last year. The announcement stated that in the next five years, Youngor plans to invest 10 billion yuan to strengthen the construction of new materials, new fabrics, new processes, new brands, new services and information systems to enhance Youngor’s national brand image and comprehensive competitiveness.
In addition, Jiumuwang’s revenue in the first three quarters was 1.543 billion yuan, and its net profit was 313 million, a year-on-year increase of 13%. Among them, online revenue increased by 0.40% year-on-year, and online gross profit margin decreased year-on-year. 0.09%. It was disclosed in the financial report that in the first three quarters of this year, Jiumu Wang’s main brand channels were adjusted and the proportion of direct sales increased. FUN brand revenue increased by 116.78% year-on-year.
Analysts pointed out that in the future, Jiumuwang will continue to promote terminal retail transformation in its main business, strengthen store operations and single store profitability, and gradually promote replicable terminal retail operation standards to direct-operated and franchised terminals. . It also opened independent stores focusing on the core category of trousers to strengthen its position as the leader in the trousers market.
At present, not only men’s clothing, but also the entire fabric workwear industry is facing market elimination. Industry insiders said that competition in the workwear industry has become increasingly fierce, leading to continued weakness in terminal sales. Currently, all major workwear companies are undergoing transformation, but how to transform has become the key to grasping the company’s lifeline. Enterprises can optimize sales channels by upgrading stores, improve the core value of products, and create new business growth points for the company.
AAAKY,7II56U65
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights, please contact us and we will change or delete it as soon as possible.
AA
