Six Sports Brands Released Semi Annual Report

Recently,

And China's trend released semi annual report, plus Anta, XTEP, 31st degree, PEAK and so on, six domestic sports brands have handed over the first half of 2012 "report card".

Because of the unsolved inventory pressure, the growth rate of the market and the reduction of orders, the performance of most sports brands declined in the first half of this year. Compared with the same period last year, the net profit of Lining in the six domestic brands was the largest, and the 85% drop was only 44 million yuan. Anta, PEAK, PEAK and so on also all reduced profits. Only XTEP was relatively stable, but the net profit had only maintained an increase of 0.3%.

Revenue and net profit fell simultaneously

In August 6th,

The first half of the report was published, with a turnover of 3 billion 934 million yuan (RMB, the same below) in the first half of the year, down 11.6% compared to the same period last year, and net profit of 770 million yuan, down 17% compared with the same period last year.

Anta pointed out in a semi annual report that profits have been seriously affected by high inventory prices and large discounts.

In addition, Anta has forecast the weakness of consumption during the reporting period, thus reducing the volume of shipments to distributors. This is also the reason for the serious decline in revenues.

Anta is just making a head start.

In August 21st, the performance of the three local sports brands released by the 31st, PEAK and XTEP were not optimistic at the same time.

Data show that the turnover in the first half of the year was 2 billion 869 million yuan, a year-on-year decrease of 9.9%, net profit of 596 million yuan, a decrease of 22.9% compared with the same period last year. The performance of PEAK in the first half of the year is even bigger. Its semi annual report shows that the total revenue of the company has been reduced from 28.5% yuan to 1 billion 610 million yuan by 2 billion 256 million yuan, and net profit has decreased from 43.3% to 240 million yuan. The most brilliant XTEP in its report card has only maintained an increase of 0.3% in its semi annual report, with a slight increase in total revenue.

Since then, Lining and China have released a series of performance reports, which exposed the plight of the whole industry.

Lining's interim results show that its operating income in the first half of the year decreased by 9.5% to 3 billion 880 million yuan, and its net profit fell by 85% to only 44 million yuan. China's performance report showed that the company's revenue in the first half of the year dropped by 29.4% compared with the same period last year, while net profit dropped by 56.9%.

Wholesale discount continues to decrease

While revenue is declining, inventory is still the "stubborn disease" faced by domestic sports brands.

Data show that in the first half of this year, the total inventory of the six brands reached 3 billion 721 million yuan, a slight increase compared with the total inventory of 3 billion 699 million yuan at the end of last year.

Among them, the total stock of PEAK increased by 107 million yuan, and the average stock turnover days increased from 49 days in the previous year to 86 days. The average receivable and receivable turnover days increased from 66 days to 121 days.

In addition, Lining inventories increased by 0.5% to 1 billion 138 million yuan at the end of last year, and the average inventory turnover period increased from 72 days to 95 days. The average stock turnover days of Anta in the first half of the year reached 50 days, an increase of 14 days over the previous year.

In order to speed up the de stocking, some sports brands adopted a way of reducing wholesale discounts to stimulate dealers.

The order of 2011, which was held in December 2010, will be adjusted to 60% from the previous 62%, and the 2012 spring / summer order will be further adjusted to 58% in July 2011.

PEAK also said that the increase in rebate and sales costs offset the rise in the price of footwear and clothing items, resulting in a decline in gross margins in the first half of 2012.

Anta also announced earlier that in order to reduce the potential inventory and discount risks of retail channels, the group continued to adopt more flexible placement arrangements, and at the same time, it would reduce the wholesale discount rate in 2013.

In addition, Anta will open more factory stores and discount stores to clean up the end of the season inventory.

Retail network begins to optimize

One side is high inventory, and the other is a little order.

In the first quarter of 2013, Anta's order meeting showed that the order amount also decreased by 20% - 30%, and the order volume of XTEP in July of the first quarter of 2013 was 15% - 20% lower than that of the same period last year.

In the overall market growth decline, the domestic sports brand expansion in the shop, also failed to advance like the previous few years, more energy was placed on the structural adjustment of the shop.

In the first half of this year, Lining opened 248 new stores, made a profit assessment of the store, made structural adjustments and closed down 1200 inefficient stores, which was up to 15%.

By June 30th, the number of shops in Lining regular stores, flagship stores, factory shops and discount stores was 7303, a net decrease of 952 compared with the end of last year, and 52 After dealers cut 5 homes.

In the first half of the year, the total number of Kappa brand stores decreased from 3119 at the end of the year to 2550 now, a decrease of 569 to 18.2%.

On the other hand, the company has changed its past sales mode and raised its spot price.

To reduce inventory pressure of distributors and optimize inventory structure.

By the end of June, PEAK's number of retail outlets in China decreased by 747 to 7059 at the end of last year.

According to the company's retail network optimization plan, the number of retail outlets will also be reduced to 6500 by the end of 2012.