By The End Of 2012, Smith Barton Clothing Inventory Can Return To Normal.

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(002269) the annual reports and quarterly results increased by two times, but there is still a voice in the market, which has questioned the company's massive opening up of stores and the radical development of its brands.

According to reporters, the company's ME&CITY brand in 2011 is still in a state of micro deficit, and the trend has emerged, the company's quarterly inventory has dropped to 2 billion 300 million yuan.

It is expected that the company's inventory will be further improved in the first half of this year and is expected to return to a reasonable level by the end of this year.

The United States has been in rapid development stage for many years. By the end of 2010, because of the production and stocking in advance, the US stock market climbed to a record high in the first quarter of 2011.

But with the rapid growth of the company's sales, the size and structure of the inventory show an obvious trend of quarterly optimization.

At the end of the four quarter of 2011, the inventory of Smith Barney apparel was 3 billion 160 million yuan, 2 billion 890 million yuan, 2 billion 980 million yuan and 2 billion 560 million yuan, respectively, except for the increase in the peak of winter storage at the end of the three quarter.

As of the end of the first quarter of this year, the United States and apparel inventory has dropped to 2 billion 300 million yuan, of which the proportion of new products increased significantly in 2012.

In the context of direct battalion system accounting for about 45% of its revenues, the company's inventory size is becoming more reasonable.

It is estimated that the inventory will be further reduced in the middle of 2012, and the inventory structure will be further optimized.

Under the influence of strong inventory, the company also paid a 3 percentage point decrease in gross profit margin.

But the impact of inventory on the performance of Smith Barney clothing is not large. In the first quarter, the company's revenue and earnings grew by 27.17% and 16.90% over the same period.

In 2011, the company took a number of measures to deal with inventory, including opening discount stores, online sales, new and old integration, setting up an efficient logistics team, speeding up product turnover and speeding up the sale of goods at the store level, of which about 300 new discount channels were opened throughout the year.

The ME&CITY brand of Smith Barney apparel has been losing money since its launch, which is expected to change in 2012.

In 2011, the popularity and cost performance of ME&CITY brand products further improved, and its design style gradually stabilized, and sales volume also increased significantly.

Data show that the brand tax sales increased from 690 million yuan in 2010 to 990 million yuan in 2011, an increase of 44% over the same period last year.

The ME&CITY brand is expected to maintain a relatively fast growth rate this year, and eventually break even.

In addition, in 2011, american apparel has introduced children's clothing.

Brand and positioning TAGLINE brand in the city, coupled with the brand launched in 2010, such as MTEE, MJEANS, MPLOAR, MSHOOZ and so on, the launch of series brand and category brand has opened up new space for channel expansion.

In 2012, the company will focus on products and shops, upgrade products and shops.

We should increase support for franchisees and form a vertical management mode.

Up to now, there are 1130 direct store stores in the United States, 3663 in franchise stores, and about 50% gross profit margins in direct shops.