Clothing Industry, Horse Racing Enclosure, Worries Emerge

2011/9/20 16:26:00 38

??? 日本語 Fran?ais English 中文

Esprit recently released its 2011 financial year performance report (up to June 30th), with a net profit of HK $79 million, a sharp decrease of about 98% compared with HK $4 billion 226 million in the same period last year.

At the same time, operation "

Uniqlo

The latest data released by the brand fast retailing company, the Spanish Inditex company and the H&M company that run the "ZARA" brand show that the sales revenue and net profit of these companies have also declined to varying degrees or narrowed.

As 79% of Esprit's sales come from the European market, the debt crisis in Europe has led to weak local market consumption.

Compared with the depressed European market, the domestic apparel market has seen a substantial increase in its revenue and net profit.

Profit rise is not demand pull

Public data show that the first half of the apparel sector listed companies to achieve

Sale

Income was 40 billion 627 million yuan, an increase of 22.43% over the same period, and the net profit attributable to parent company was 3 billion 629 million yuan, an increase of 49.12% over the same period last year.

Tan Ke, an analyst with Dongxing's textile and garment industry, believes that because the clothing sector is dominated by brand clothing, these enterprises have certain market bargaining power and excellent management ability, which can promote profit growth faster than revenue growth by increasing gross margin or controlling costs.

It has a certain overlap with the target consumers of multinational garment companies.

Clothing brand

In the first half of 2011, the United States apparel business achieved total revenue of 3 billion 792 million yuan, an increase of 49.31% over the same period last year, and realized net profit of about 376 million yuan, an increase of 833.06% over the same period last year.

Semir apparel achieved a total revenue of 3 billion 9 million yuan in the first half of this year, an increase of 36.64% compared with the same period last year. Net profit attributable to listed companies was 437 million yuan, an increase of 29.12% over the same period last year.

The main reason for the increase in net profit is that the price of clothing is also rising as cotton prices skyrocketed, commercial real estate rents rise and labor costs rise.

Guo Jin securities analyst Zhang Bin said, "before 300 yuan ~500 yuan can buy a good clothes, now clothes will be thousands of dollars."

"The rise of prices has directly contributed to the rapid growth of net profit of listed companies, but this is not the pull of demand, not the increase of sales volume. This can be seen from the simultaneous increase in inventory."

Zhang Bin said.

{page_break}

According to Wind statistics, in the 2011 China Daily, the inventory turnover days of Smith Barney clothing were 243.31 days, compared with 110.69 days in the same period last year. The turnover days of Semir clothing inventory were 103.22 days, compared with 72.87 days in the same period last year.

In the first half of the first half of this year, Li Ning Co's revenue and China's trend in Hong Kong stock market were reduced by 4.8% compared with the same period last year due to inventory and other factors. China's trend revenue plunged 45.1%.