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    Smith Barney Will Open A Special Store To Solve 3 Billion 160 Million Inventory Problems.

    2011/5/19 10:04:00 41

    American Apparel Investment

      

    American Apparel

    (002269.SZ) Zhou Chengjian, chairman of the board of directors, said at the shareholders' meeting in May 18th that Smith Barney's clothing will be digested by setting up a special store to sell wholesale products to wholesalers at around 65% off of the price and strive to basically solve the inventory problem in the first half of next year.


    In 2011, a quarterly report showed that the amount of apparel in the United States was 3 billion 160 million yuan, not only 2 billion 550 million yuan in the beginning of this year increased by about 600 million yuan, but also far higher than the 2 billion 75 million yuan in the first quarter of 2011.


    Zhou Chengjian explained that the problem of more inventory is mainly caused by climate anomalies.

    He said: "in September of 2010, our direct store and store could grow to 80%-90%. We predict that in the fourth quarter of 2010 and the first quarter of this year, the comparable growth of the same stores can reach 100%, thus increasing the number of orders.

    Also appeared in 2010.

    Labor shortage

    Spring and summer clothing has been delayed until 4-5 months before delivery, and missed the best time to market. In order to avoid the impact of shortage of migrant workers this year, we placed the order ahead of time, and in December 2010 and January this year, spring and summer clothing was delivered.


    Zhou Chengjian admits that climate change has disrupted the production and sale plan of Smith Barney clothing.

    In October 2010, the weather became warmer and warmer. It didn't really enter winter until December. After the arrival of 2010 winter, the spring came late again this spring. The bamboo shoots that had springtime on Qingming Festival came out only a month later this year, and the sales of spring clothes were also affected. In addition, some of the larger stores in the United States originally set up a sales discount clothing on the floor, and later felt that the brand image had been affected. Last year, the discount area was withdrawn, and the alternative channels were not established. The above factors led to more stock in the late 2010 and the first quarter of this year.


    At the shareholders' meeting, investors suggested that the size of the scale should be around 1 billion 500 million yuan for the enterprises such as the state of the United States, and for more than 1 billion 500 million yuan of inventory, Zhou Chengjian revealed that it would be sold at a lower discount through the form of a special store. The products were sold to dealers at about 65% off of the sale price, and 65% off were still higher than the cost price.


    Smith Barney apparel has held a special sale recently.

    Order-placing meeting

    Zhou Chengjian said, with the discount store operation in the first half of next year, the inventory problem will be basically solved.


    Smith Barney's 18 day suspension due to shareholders' meeting.

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