2013 semi-annual report listed garment enterprises gradually released from a number of companies reporting point of view, the past six months since the apparel industry downturn, not a fundamental improvement in market conditions, the troubled industry-wide high inventory issue has not been resolved However, some level of profitability has increased, overall mixed.
Analysts believe that the next period of time within the garment industry is still in the early rapid expansion of “hangover” torture stage, but with the gradual advance to the inventory, some of the clothing company’s profitability will be repaired and improved.
Some recovery in corporate earnings
Clothing enterprises from the market situation, the first half of the operating conditions vary. Among them, women’s share of leading enterprises in the first half Lancy company realized main business income of 684 million, an increase of 25.21%; attributable to shareholders of listed companies net profit of 149 million to complete, an increase of 4.74%.
Semir clothing also achieved the first half of the recovery of revenue and net profit growth, operating income of 2.725 billion yuan, an increase of 8.51%; net profit of 2.84 billion yuan, up 14.4 percent. Same period last year, net profit of 248 million yuan Semir clothing, down 43.22%, net profit also fell last year by 37.8%. The company expects growth will continue this year, from January to September net profit growth rate will be 0% -30%.
But by the impact of domestic and international economic downward trend in the first half operating results joeone decline. During the reporting period, the company achieved operating income of 1,163,788,600 yuan, down 2.29% compared with the same period last year; attributable to shareholders of listed companies net profit of 290,500,300 yuan, down 14.03 percent, there has been double revenue and profit decline.
361-degree semi-annual report showed, the first half of 2013, turnover decreased by 361 degrees 30% to 1.998 billion yuan, 205 million yuan profit 361 degrees, down 65.6 percent year on year. According to analysis, the first half of the domestic economic slowdown, the uncertain economic outlook weakening consumer sentiment, rising production costs and fierce competition, resulting in ordering the sharp drop in the number of orders and margin damaged.
Hong Kong-listed Li Ning Company announced interim results for the first half of the show, the company achieved revenues 2.906 billion yuan during the period, representing a decrease of 24.6%, a loss of 184 million yuan, a year earlier profit of 44.29 million yuan. Its Executive Vice President Kim Jin-jun said the company is so improved inventory and sales, is expected to close the shop the next six months to one year the rate will slow down.
Another day of Olympic sports brand is also not better, by the end of June this year the company’s net profit decreased from 62.5% to 89.9 million yuan, and Peak 2010, compared to the previous semi-annual report, the first half of this year, its net profit decline was maximized. Pick attributed this sustained extensive inventory liquidation activities and weak economic conditions on the demand for new products had a negative impact.
Destocking is still imminent
This viewpoint and industry analysts own thinking. Some analysts believe that, to some extent, the clothing brand competition is not who’s results look better, but to inventory capacity, who first clean up the inventory to a reasonable level so that the channel rejuvenate, who will most low tide in this round first recovery.
Reported from view, garment enterprises in regard to the inventory effect overall unsatisfactory. Early 2012, Lang Zi shares inventories 269,000,000 yuan, increased 18.46% to the end of June reached 318 million yuan. In the first half, Semir clothing inventory amount was a peak of 1.5 billion yuan last year, fell to more than 700 million yuan, but the gross margin fell by 2.47%.
Sports brand, Li Ning, said Kim Jin-jun channel inventory has returned to a healthy level. Li Ning, the average channel inventory turnover period from the peak of more than nine months to 7 months, the total inventory reduction of over 30%. Anta inventories of 687 million yuan from the end of 2012 fell to 576 million yuan mid-2013.
For inventory problem, 361 degrees, said that in view of oversupply, inventory control is an important task of the company, distributors and companies are taking orders for the release and cautious.
Shenzhen, a fund manager told this reporter: “A lot of garment enterprises to inventory destocking way down to downstream sales channels, so that although the apparel business inventories fell, but the channel inventory actually increased demand in the industry no significant improvement in the case, the channel capacity has not improved digestion, high inventory problem is still not resolved. ”
It is noteworthy that, clothing companies are trying a new sales cycle changes. Joeone at the year end in the direct operation and number of 3205, in the first half to reduce 59, while its optimized form of sale terminals, shopping malls based model from relying on the development of shopping malls and stores both wings to fly mode. Seven wolves in the expansion of the dealer’s assessment of the number of new store openings canceled hard targets, more to the decoration, subsidies on the help and support, significantly enhanced the profitability of the stores attention.
Younger generations will be e-commerce as a whole managed to operate specialized carriers, built in the days of cat and Jingdong electronic business platform, as a strong complement to traditional sales channels. The future, the company will further leverage marketing network, logistics and distribution, and transmission of information and other resources, to strengthen the line of the show, experience and value-added services, and online platform to form the full two-way interaction, in order to optimize channel deepening.
361 degrees is another promising market segments. First half of the total number of children’s products retail outlets increased from 1678 1590, of which 390 adult located at 361 degrees counter within the retail stores.
The fund manager said garment enterprises to stock “self-help” measures of effectiveness remains to be seen, in the inventory problem has been effectively resolved, the apparel industry as a whole is not very high degree of prosperity. Magang shoes and apparel industry is an independent commentator commented, “accurate to say that there are signs of some companies, the outlook is not bright!”
