Yu sent men's clothing industry recovery turning point appeared

In the face of falling domestic sales and a weak market for external demand, the textile industry has not yet reached the expected growth this year, and the benefits of many companies have even been reduced.

The signs of recovery in sports brands do not represent the full set-up of the entire textile industry. In a market puzzled by sluggish domestic sales and sluggish external demand, some companies frankly stated that due to factors such as weak domestic demand, sluggish industry, and increased store operating costs, retail terminals still face certain inventory pressures and operational pressures.

Industry recovery appears

As major companies have gradually adjusted their business strategies, the turning points for the recovery of the industry may have emerged.

In the first half of this year, the turnover of Cabin apparel increased from approximately 335 million yuan in 2013 to 429 million yuan, an increase of approximately 28%; EBIDTA (profit before tax depreciation and amortization) rose by 30.0%, from an increase of 123.6 million yuan in the same period last year to 16.607 billion yuan; net profit rose 47.1%, from 769.09 million yuan in the same period last year, *** to 111.3 million yuan***; earnings per share of 0.16 yuan, an increase of 6.7% from 0.15 yuan the same period last year.

Turning to the increase in turnover and net profit, the report explained that this was mainly due to the increase in wholesale orders of Cabin's spring-summer 2014 series. During the period, total sales reached 3.2 million, an increase of 23%. As of June 30, 2014, the sales rate of the 2013 series of the Group's retail level exceeded 85%, while the Spring-Summer 2014 collection exceeded 50%, and the average retail discount decreased by 1.4% from the previous year.

Thanks to the return of orders in the spring and summer season, Lilang has also seen a significant increase compared to last year.

On August 11, Lilang announced its six-monthly interim results as of June 30. According to statistics, during the announcement period, Lilang’s turnover was 1.091 billion yuan, a slight decrease of 0.2% from the same period of last year. Profits increased by 2.4% year-on-year to 2.48 billion yuan, and basic earnings per share were 20.7 points.

The sales volume of LILANZ, the Lilang brand, was 992 million yuan, down 2.1%. The sales of subsidiary brand L2 was 95.3 million yuan, up 20.2%. Operating profit increased by 7.3% to RMB 295 million from RMB 275 million in the first half of last year, and operating margin increased from 25.2% to 27.1%. The net profit rate was 22.7%, up 0.5%. The gross profit rate is 40.9%.

Both Kabin and Lilang expressed that due to the slower-than-expected recovery in the domestic retail market, the adjustment of the retail network was accelerated during the announcement period, and at the same time, the pace of opening stores was slowed down.

Leading companies have a strong momentum of development, and SMEs, which are the foundation of the entire industry, are not doing much. According to the relevant person in charge of the Jinjiang City Economic and Trade Bureau, “In recent years, a number of companies including Tianlun Tian, ​​San Frye, and Cassión have transformed into benign ascending tracks through the transformation of outdoor products and children’s products; Philharmonic, Greater East Asia, etc. A group of companies have successfully entered the global supply chain of brands such as Reebok and Adidas by strengthening management and enhancing internal control and participating in international brand OEMs.”

Individual stocks show differentiation

With major companies gradually adjusting their operating strategies, a turning point in the recovery of the industry has emerged. However, despite the improvement of the industry environment, the performance of companies is not consistent.

The overall downturn in the apparel industry has caused the related companies to suffer. The mid-term report card handed over by the “Men's Trousers” as the mainstay of Jiu Jiu Mu is also able to confirm this status quo. The semi-annual report released by the company shows that the company's operating income was 971 million yuan, a year-on-year decrease of 16.56%; the net profit attributable to listed companies was 218 million yuan, a year-on-year decrease of 24.80%.

At the same time, Jiumuwang’s IPO largest investment project marketing network construction was completely terminated after nearly RMB 400 million was invested in the previous period. The company plans to use the remaining raised capital of RMB 900 million to supplement liquidity.

The same decline in business performance, as well as the expensive bird listed just this year. In the first half of the year, Guiren Bird's camp revenue was 995 million yuan, a year-on-year decrease of 19.04%; net profit was 164 million yuan, a year-on-year decrease of 5.77%. However, the company's “retail-oriented” transformation and upgrade at the beginning of this year has eased the pressure on retail stocks.

For the decline in performance, elegant bird said that because the company is mainly located in the third and fourth-tier cities and sports and leisure fields, compared to other companies in the same industry, the fluctuation of the industry cycle has a certain lag. The company admitted that retail terminals are still facing certain inventory pressures and operating pressures due to factors such as weak domestic demand, sluggish industry, and increased store operating costs.

And this month, elegant bird intends to hold the spring and summer 2015 trade fairs, judging from the industry recovery trend, company management upgrades and franchisee stocks, the ordering performance is expected to be better than the 2014 autumn and winter trade fairs, laying the foundation for the profit growth recovery in 2015.

Zipper contrarian growth

The second largest zipper manufacturer in the world, Zhaoxing Co., Ltd. also released its mid-year report on the 15th. In the first half of this year, its operating income was 540 million yuan, up 10.08% year-on-year; its operating profit was 0.58 billion yuan, up 28.39% year-on-year; and the net profit attributable to shareholders of listed companies was 0.53. Billion yuan, a year-on-year increase of 41.32%; basic earnings per share of 0.34 yuan.

Zhaoxing Co., Ltd. stated that due to the company's due date, stable quality, optimization of product and customer structure, increase in sales revenue, low cost of major raw materials, increase in operating profit greater than sales revenue, and increased net profit from government subsidies, net profit increased significantly. Xie Jingbo, Deputy Secretary of Zhaoxing Co., Ltd., said in an interview: “In the first half of the year, we achieved better results. The overall market share of the company’s zippers was about 10%, and some brand customers’ share was 70%. The apparel accessories market was good in the first quarter and many companies felt that As order volume rebounded, the industry entered a peak season in March and the industry became disparate. The situation in the second half of the year was still not good enough to judge that the outdoor sports accessories market had not yet bottomed out.

The information from the Fujian Province Zipper Industry Chamber of Commerce is that, thanks to the recovery of the foreign trade situation, the promotion of zipper exports this year has been significant. In the first half of the year, orders have increased by nearly 10% compared to the same period of previous years. There have even been cases of “single jobs”. However, the good situation in the first half of the year also has an impact on demand in the second half of the year. In the peak season that occurred in August in previous years, it is expected to be postponed by one month.

E-commerce trend

The reporter found that a number of listed menswear companies gave roughly the same interpretation of poor performance: inventory still remains a drag on net profit, promotional factors, rising labor costs and other factors led to decline in gross profit margins, the market has not yet recovered. In addition, in the face of the impact of fast fashion, luxury brands, e-commerce, etc., companies have sought to transform their stores, positioning, etc., but at the same time also pushed up the relevant costs. And the improvement in the men's wear, leisure and footwear segments was mostly narrowed, indicating that the current supply chain reform has not yet arrived, and apparel brands are in a period of entanglements between the old and new models, and the reforms are long way to go.

Carbane’s chief executive, Wu Shaoqiang, also said that it will launch an e-commerce site by the end of 2014 or early 2015. However, it will not cooperate with Tmall or JD.com and will not only operate its own products but also sell seasonal products. At present, the e-commerce business of domestic brands is mainly based on the sales of end-use goods. The strategy of contrasting Cabbeen Carbine is very bold. However, Cabbeen Cabin also has a Tmall shop based on Weihuo.

The noble birds with unsatisfactory first-half results also stated that in the second half of the year, they will continue to focus on the transformation of retail management, increase the depth of operation in the third and fourth-tier markets, and attract franchisees to conduct e-commerce channel layout, try O2O operations, and the management of noble birds in retail The upgrade will help improve profitability.

For the current e-commerce, Li Lang related responsible person said that because the current domestic online sales market is still dominated by discounted sales, merchants have lower profitability, so the group has not yet vigorously develop online sales plan. "At present, Lilang sells its two branded products through an online sales platform. In addition to non-season products, the products and prices of online sales platforms are the same as physical retail stores."