More and more obvious signs that three years of working hard and making domestic sporting goods industry gradually through the “winter”, began to usher in the recovery period.
With the advance of the mid-year report disclosures, many sports brand companies listed in Hong Kong have also showed the transcript, ANTA Sports, Olympic sports are on August 6, the disclosure of interim results on the 14th. Since the second half of 2011 the entire domestic sporting goods industry experienced depth adjustment, a substantial decline in business performance, have experienced large-scale influx since closed shop, the two companies have revenue and net profit growth for the first time to restore a more substantial double, making the market and brokerage its very promising.
Li Ning, the report shows that, despite its loss widened in the first half of 184 million yuan from the same period last year to 586 million yuan, but its implementation of “transformation plan” has been somewhat effective. And 361 degrees and Xtep International announced operating data also show, to achieve the company’s same-store sales consecutive quarter of positive growth and more, ordering performance is stronger than expected.
Overall, the first half of sportswear improved operating conditions compared to before, companies are referred to the “retail-oriented” business ideas in an important announcement, and taken to strengthen inventory management, the implementation of a diversified and differentiated products and other means to stimulate recovery.
Daily News revealed that the situation is excellent, led Anta sports business
August 6, ANTA Sports released the first half of 2014 results announcement, 1 to June ANTA Sports revenues of 4.12 billion yuan, an increase of 22.4%, net profit attributable to shareholders of listed companies to 803 million yuan, an increase of 28.3% which, footwear, apparel and accessories sales growth was 18.8%, 25.2% and 37.3%, gross margin rose from 4 to 45.1%, the performance exceeded market expectations.
Li Ning, the report showed that as of June 30, the company achieved revenues 3.137 billion yuan, an increase of 8.0%, loss widened from the same period last year, 184 million yuan to 586 million yuan, an increase of 2.18 times the loss.
The number of stores, the ANTA and its children, FILA brand to continue to adjust the number of stores, currently the company store for 7701, 56 less than last year. Children’s sporting goods store where Anta total 987, an increase of 106 compared to the end of last year, FILA stores increased by 25 over last year. Chairman of the Board of Directors and CEO of ANTA Shizhong previously disclosed, a total of two years Anta closed shop over 1000.
The total number of Li Ning brand stores for 5671, a net decrease of 244 compared with the end of last year; dealers 52, compared with the end of last year to reduce the three. In addition, inventory aspects of data show that as of the end of June, Li Ning inventories increased to 1.089 billion yuan compared with the end of the current year 942 million yuan. The cumulative amount of the provision provision for inventories of approximately 400 million yuan, by the end of 2013 was 382 million yuan.
Disclosure of data from which to see, Anta 1 to June inventories increased 690 million yuan by the end of 2013 to the current 791 million yuan. By cleaning up the channel, and a series of measures to digest inventory, ANTA Sports scores in the first half of this year, has been second only to its first half 2011 net profit of 927 million yuan of the best historical performance.
For the good performance of the company reasons, Anta in the newspaper that the company adhere to the retail-oriented measures to improve the level of product differentiation, to develop children’s clothing brand and e-commerce platform, and began O2O mode. In addition, Anta especially emphasized a number of initiatives to improve the retailer.
In addition to Anta, the already released 2014 interim results of the enterprise, but also to improve the retailer profits, diversified brand strategy and improve inventory as a major task.
Olympic sports in the disclosure of interim results on August 14, and its authorized retail outlets operated for 6000, a net decrease of 12 than the end of last year. Among them, stores in China in 6194 decreased from the same period last year to 6000, but each average turnover of authorized Peak retail outlets operations rose 5.1%.
Peak said the sporting goods industry in the first half of 2014 reversed the downward trend in the past two years, the company in the first half turnover of 1.291 billion yuan, an increase of 10.07%, net profit of 121 million yuan, an increase of 34.59%. In particular, its business in overseas markets increased significantly, revenue Pick overseas markets accounted for 22.6% of total turnover, turnover of 174 million yuan from the same period last year rose to 291 million yuan, an increase of 67.5%.
Data showed 361 degrees, in the second quarter same-store sales rose 2.8 percent, the data fell 0.8 percent last year, while distribution channels and retailers inventory ratio was 4.1 times, compared with 4.4 times last year there declined, the retailer also makes profit improvement for this year is 361 degrees confidence.
In addition, 361 degrees in the second quarter to close 259 stores, opened 352 stores, the total number of stores to 7,140 companies, including children’s clothing stores increased 72-1965. According expects 361 degrees in the second quarter sales rose 3.1%, orders ordering winter also expected to increase 8%. The Olympic Sports ordering a quarter of the total orders in 2015 compared with the same period in 2014, also identified will achieve 10% to 20% growth.
Show signs of recovery in the industry enterprises of varying pace
Domestic sporting goods industry since 2012 into the depth of the adjustment period, but with the major companies continue to adjust business strategy, industry recovery turning point has emerged. But despite the industry environment has improved, corporate performance is not consistent.
Had been considered to be the leading domestic sports brand Li Ning Company, has been to catch up and overtake ANTA Sports.
The reason for the loss widened, Li Ning, the company explained: “Because the transition plan starting from July 2012, early investments include direct sales network and marketing resources to expand investment, is one of the causes of loss; Second, in the clean-up of distributors after the inventory period, the company continued to decline in wholesale and sell new products. ”
Investment Advisor in light researcher Xiong Xiaokun believe that Li Ning company reported poor results, mainly due to restructuring in the channel, clearing inventory cost too much money, resulting in labor costs and bad debt provision increase, resulting in higher investment, the effect of weak situation.
In addition, in collaboration with Li Ning Company 23 years of the State General Administration of Sport gymnastics management center, turn toward the ANTA Sports, which has become the industry’s interpretation of the depth of the domestic sporting goods industry reshuffle, replacing Li Ning, Anta become a “leader” of the signal.
For Anta signing gymnastics management center, Li Ning said its renewed initiative to give up, because the company’s strategic focus into basketball, running, badminton, sports training and athletic life of the five projects, the sports marketing, event experience, product experience and retail experience as future development goals. After giving up cooperation with the gymnastics team, currently owned Chinese badminton team Li Ning, the Chinese table tennis team, the Chinese shooting team and the Chinese diving team four gold medal team sponsorship rights. The ANTA Sports in addition to new gymnastics team, still with water sports management center, Winter Sports Management Center, boxing Tae sports management center partnership.
In addition to Li Ning outside, A-share listed companies to disclose the semi-annual report and elegant birds, first-half operating income of 995 million yuan, net profit of 164 million yuan, respectively, year on year decrease of 19.04% and 5.77%. In addition the company made “retail-oriented,” the transformation and upgrading in the beginning of this year, the retail end inventory pressures have abated.
For the second half of the development of ideas, elegant birds raised in the announcement will focus on promoting the fine management terminal retail strengthen efforts to expand market channels three or four lines, timely early warning and enhance the level of efficiency of the terminal stores and profitability.
In the industry to pick up the background, Anta reporting the results also make brokers expressed optimism about its prospects.
Merrill Lynch research report pointed out that strong retail performance Anta terminal and better profitability, will continue to drive order to perform well. Citigroup believes Anta benefit from economies of scale and increase the contribution of higher margin FILA brand, Anta will lead to more robust profit growth prospects.
For the entire sporting goods industry outlook, Xiong Xiaokun noted that with the destocking process forward, the industry is now showing signs of recovery, but the trend is still to look at how the overall consumer environment. “Li Ning channels in a given period are the focus of finishing operations, and Anta, special steps, such as low-end brands, mainly in low-cost strategy to clean up the inventory.”
