Lining Gradually Raised Prices And Narrowed The Price Gap With International Brands.

Rising prices drive company performance

XTEP announced its semi annual report.

Rising cost is the main reason.

The explanation for the collective price increases of local sports brands is also the same.

According to the author's semi annual report on XTEP and Anta, it is found that the increase in labor and raw material costs is the main reason for raising prices in the first half of this year.

According to XTEP semi annual report, staff costs increased from 81 million 318 thousand yuan in the same period last year to 95 million 345 thousand yuan, an increase of 17.2% over the same period last year. The cost of raw material sales was 537 million yuan, an increase of 18.7% over the same period last year.

An insider of a foreign sports brand tells me that the price of the fabric has increased greatly, especially the price of some imported fabrics has risen by more than 30%. The wages of the factory workers have just risen, otherwise the skilled workers are difficult to recruit.

In addition, there has been a small increase in expenditure on publicity and promotion.

Taking Anta as an example, the proportion of advertising and publicity expenses in the first half of this year accounted for 12% of business revenue, an increase of 0.8% compared with the same period last year.

But not all sporting goods companies raise their prices because of increased costs.

Earlier, Li Ning Co stakeholders said that the price increase was mainly aimed at enhancing brand positioning and narrowing the distance between multinational sports brands.

Clothing stocks outperform the market

Will the price increase of sports apparel go to the whole industry?

Insiders told me that the retail price of branded clothing has generally risen by 10%-15%.

People in the industry expect that the wholesale price of clothing products in autumn and winter will also increase by 10%-15% this year.

It is worth mentioning that at present, the A share market has started to rise from over 2 in July, and has risen by more than 23%, compared with less than 9% in the same period.

Among them, the leading stock of the United States and apparel has risen 26% this month.

Wu Xiaoyu, an analyst at Xiangcai securities, said that the pressure of market cost is increasing, especially the price of raw materials has been kept high this year, so some garment enterprises have to raise wholesale prices.

He believes that with the advent of autumn and winter, there will be a marked increase in the retail price of clothing, and the performance of some clothing listed companies will remain stable.