In The Medium Term, The Profit Of Sima Clothing May Decrease By 35%~45%

The night before yesterday, Sima Clothing The announcement on the revision of the interim report performance was released, saying that the net profit in the first half of 2012 was expected to decline by 35%~45%, and its previous forecast was expected to decline by 0~30%. The announcement shows that the reason for this performance correction is the year-on-year decline in operating revenue, the increase in inventory and the corresponding provision for price decline and operating expenses. Affected by this, Sima Clothing closed down 1.48% yesterday, and the whole clothing sector closed down -0.93%.

Guo Haiyan of CICC said that in the long run Clothing pricing The high level affects the growth of sales volume and increases the fluctuation of the industry. As the domestic consumption concept tends to be mature and rational, online shopping develops rapidly, international brand channels sink and circulation links are reduced, and the average markup rate of the domestic clothing market has downward pressure. In addition, the channel efficiency of the whole industry is low, there are many agency links, high deduction points in shopping malls, low inventory turnover rate, high taxes and other problems, which force domestic brands to improve channel efficiency.

Statistics show that among the companies that have issued interim performance forecasts, there are 7 companies with a growth rate of more than 30%, 2 companies with an expected growth rate of 10%~30%, and 3 companies with an expected growth rate of less than 0%. In addition to Sima Garments, there are Lutai A and Luolai Home Textiles.

"The domestic clothing industry is struggling with inventory while racking its brains to pursue the pace of fashion." Industry analysts said that the excessive growth of stores and inventory has become one of the challenges of the entire sports clothing industry (see the table for specific data), "According to the data from retail terminal department stores, sports brands have been basically saturated in the brand portfolio of major department stores, and even reduced in the business area. In the future, the threshold for sports brands to enter department stores will be higher and more difficult. With the rapid decline of sales, the inventory pressure will become prominent."

In fact, the whole textile Clothing industry Sima is not the only one who has lowered the expectation of the China Daily. On the evening of July 10, Luolai Home Textile revised its semi annual performance forecast. It is estimated that the net profit will decrease by 0%~30% year on year. The last performance forecast of Luolai Home Textile said that "the net profit in the first half of 2012 increased by 0%~30% year on year."

The report points out that the main reasons for the expected decrease in profits are lower than expected revenue growth, higher expense rate, and lower government subsidy revenue than the same period last year. Analysts believe that e-commerce channels are becoming more and more important for home textile brands, while traditional brands are subject to the high cost of offline channels, and have no obvious advantages over emerging brands dominated by e-commerce channels.