Look Behind The Semi Annual Reports Of Listed Companies In The Field Of Casual Wear From The Semi Annual Reports Of Sima Garments Of Meibang Garments

Some time ago, spin clothing All listed companies in the industry have released 2012 interim performance reports. As far as the leisure sector is concerned, the semi annual reports of companies can be said to be "mixed". The "beautiful performance" is certainly worth rejoicing, but the performance is not so "powerful" also need not be dejected. The most fundamental thing is still that no matter in which case, enterprises should adjust according to their own reality, in order to use "beautiful" achievements to give back to themselves in the future and obtain the impetus for sustainable development.

　　 Smith Barney Clothes & Accessories : Channel growth slows down and inventory drops

August 27, Shanghai Metersbonway Clothing The joint-stock company has released the 2012 semi annual report. The report shows that in the first half of 2012, the company realized an operating income of 4.6 billion yuan, up 21.21% year on year; Operating profit was 528 million yuan, up 16.59% year on year; Net profit attributable to owners of the parent company was 432 million yuan, up 14.83% year on year; Realize basic earnings per share of 0.43 yuan.

It can be seen that under the pressure of the "big store model" that was criticized a while ago and the high inventory, Meibang Clothing still delivered a good "report card" in the first half of this year.

According to the report, in the first half of 2012, the growth of major developed economies in the world was sluggish, and the downward pressure on China's economy increased. Affected by the economic environment, the consumer market remained depressed. The management of the company, closely centering on the annual business objectives set by the board of directors, took a number of measures to actively explore the market. During the reporting period, the company added 346 stores, covering an area of 47000 square meters, including 192 new stores for direct marketing and 154 new stores for franchise.

At the same time, the company's operating quality continued to improve, the asset liability ratio declined steadily, and the operating net cash flow increased significantly from - 550 million yuan in the same period last year to 1.7 billion yuan in the current period.

In terms of channels, as of June 30, 2012, Meibang Clothing had 5139 stores, including 192 to 1322 direct stores and 154 to 3817 franchise stores. The new stores were mainly stores of Meters Bonway brand and MooMoo brand, with an average area of 136 square meters. According to the analysis of Northeast Securities, the proportion of direct business of the company has further increased. In the first half of the year, its direct business and franchise business respectively achieved revenue of 2.317 billion yuan and 2.244 billion yuan, with growth rates of 22.15% and 19.84%. The proportion of the company's direct sales revenue increased by 0.5 percentage point to 50.8% compared with the same period last year, which is mainly due to the expansion of the company's direct sales stores and the improvement of its business ability in recent years. The company will maintain the balanced development of direct sales and franchise in the future.

BOC International believes that with the continuous rise of terminal operating costs, the channel strategy of Meibang Clothing is gradually transforming to small stores and boutiques. In the first half of the year, the stores and business area increased by 7% and 5% respectively compared with the end of 2011, and the speed of extension expansion slowed down. Meibang Garments is a leading enterprise in the youth casual wear industry in China. After years of exploration, the company has accumulated strong experience in direct management and multi brand operation.

According to the analysis of CIC Securities, the development plan of Meibang Clothing in terms of channels is that the number of channels has reached 5139, with a large base. The growth rate of channels will slow down in the future, and the promotion of single stores will be a more important growth point; At the same time, the company will attach importance to the promotion of single store effect, which will be a long-term process of efforts: first, it will attach importance to the classification management of stores, form four types of standard stores according to regions and business circles, and carry out differentiated commodity planning and supply chain support; The second is to accelerate the supply chain turnover and improve the ability to pursue orders and replenish goods in the quarter.

For the inventory problem that has attracted much attention from the outside world, the inventory of Meibang apparel fell by 31.52% compared with the beginning of the year. Since 2011, the scale and structure of the company's inventory have shown a trend of quarterly decline and optimization, and the inventory and sales structure has tended to be balanced. By the end of June, the company's inventory balance had dropped by 810 million yuan to 1.75 billion yuan compared with the end of 2011? RMB 100 million, a decrease of 31.52% compared with the beginning of the year and 24.35% compared with the end of the first quarter. This is mainly because the company continues to adopt an active strategy to digest inventory goods, relying on the improvement of terminal service management ability, and the implementation of marketing strategies is active and effective; At the same time, we continued to moderately control the scale of production and procurement, thus reducing the inventory level. With the terminal destocking, the inventory problem that has plagued the company for a long time has been improved.

Orient Securities believes that Meibang Clothing has passed through the most difficult period, and there is a greater probability of improvement in the future. Orient Securities predicts that the leisure clothing industry will gradually return to a more healthy and reasonable growth rate in 2013,

The company still has strong comprehensive competitiveness in the second and third tier cities in China. It is expected that the whole brand series of the company will present a wider, richer and more distinctive gradient structure from 2012, and the future development space will be further expanded.

Meibang Clothing said that the public Leisure clothing industry , which is greatly affected by the economic environment and consumption demand. If the economic growth continues to slow down or stagnate, the consumption ability and willingness of consumers will continue to decline, which will adversely affect the future development of the company; At the same time, international brands, relying on their brand advantages, rich fashionable product design and advanced business management and operation experience, compete to enter and continue to penetrate into second and third tier cities. Overall, market competition will still intensify, posing a certain challenge to the future business development of the company. To this end, the company will continue to improve its comprehensive product competitiveness, terminal retail management ability and internal business management level, improve its market influence and brand influence through the improvement of its comprehensive competitiveness, and ensure the realization of its future development strategy and business objectives.

　 Souyute: accelerate channel expansion and strengthen internal management

The 2012 semi annual report of Dongguan Souyute Garment Co., Ltd. can be described as "beautiful". During the reporting period, the company continued to strengthen the development and construction of sales channels, strengthened internal management, and further expanded its brand influence. The company realized a total operating income of 664 million yuan, up 48.3% year on year; The total profit was 130 million yuan, up 48.74% year on year; The net profit attributable to shareholders of the listed company was 95.8848 million yuan, up 46.48% year on year; Realize basic earnings per share of 0.33 yuan.

From the perspective of channels, franchise channels and proprietary channels increased by 47.11% and 60.95% respectively over the same period last year; From the perspective of series products, the revenue of each series of products has maintained rapid growth, of which the lady series, campus series and fashion series have increased by 39.68%, 45.05% and 58.89% respectively over the same period last year; In terms of regions, South China, Central China, Southwest China and East China all achieved rapid growth, of which the revenue of the main South China region increased by 109.88%, and the proportion of revenue increased significantly to 38.82%.

Guohai Securities pointed out that in the first half of the year, there were about 1600 Soyute stores, with an expansion rate of 8%. From the perspective of channel mode, franchise channel and proprietary channel increased by 47.11% and 60.95% respectively over the same period last year. In terms of regions, the company's South China region grew by 110%, showing the regional control advantage of strong regions in terms of store quantity and quality.

Orient Securities believes that Souyute will position 2012 as the "management year", and through projects such as "Top 100 Franchisees", the extension expansion of stores will be synchronized with the quality improvement of individual stores. On the one hand, the average area of new stores increased from 100 square meters in 2010 to 140-150 square meters in 2011, and then to more than 200 square meters in 2012; On the other hand, under the background of unclear external environment, the company itself strengthened internal control, team running in and supply chain management, laying a solid foundation for steady growth for three years or more.

In general, Soyute is mainly engaged in the design and sales of youth leisure clothing products of the "Fashion Frontier" brand through brand construction and promotion, product design and research and development, marketing network construction and supply chain management, with the business model of combining franchise and direct marketing, production and logistics outsourcing. The products cover women's clothing and men's clothing, specifically including T-shirts, shirts, sweaters There are 10 categories, such as casual wear, and the consumers are mainly people aged 16-29 years old.

Liu Hui, an analyst at Qunyi Securities, believes that at present, Souyute is mainly engaged in the design and sales of the "trendline" brand, and its product positioning is youth casual wear, focusing on the third and fourth tier markets in East China and South China. Although the brand power of "Trend Front" is not comparable to that of Meibang, Sima and Yichun at present, the average unit price of its products is about 100 yuan, 15% - 20% lower than the average unit price of Meibang. In the past five years, the consumption capacity of the third and fourth tier cities has gradually increased.

Since its establishment, the company has been focusing on the three and four categories of domestic youth leisure clothing market, taking "popular fashion" as the brand positioning, taking the lead in the industry to put forward the concept of "fashion to the countryside", and is committed to putting youth leisure clothing with fashionable trends, diverse styles, high quality and low price in the three and four categories of markets, so that ordinary consumers can enjoy affordable fashion clothing. At present, the company brand has become the leading brand in the third and fourth categories of the domestic youth leisure clothing market.

Souyute said that the main reason for the good performance in the first half of the year was that the company continued to increase the development and construction of sales channels. Since 2012, it has in principle required new franchise stores to be more than 200 square meters. At the same time, it encouraged franchisees to "develop in the air" and open stores with multiple floors. The company continues to support franchisees to open large stores and multiple stores in an all-round way through various measures such as granting credit lines for goods payment, delivery racks, lamps, subsidies for decoration, management training, etc; The company has also made continuous progress in internal management, brand promotion, product R&D and design, and further expanded its brand influence; The number, area and quality of the company's terminal stores have been steadily improved, supporting the steady and rapid growth of the company's business performance.

In addition, in the semi annual report, Souyute also predicted the business performance from January to September 2012: the year-on-year growth rate of net profit attributable to listed companies was 40% - 70%, corresponding to the attributable net profit from January to September 2011 of 111 million yuan, and the profit range from January to September 2012 of 155 million yuan to 189 million yuan.

　 　 Sima Clothing : Poor performance does not hinder its brand value

Compared with Meibang Clothing and Souyute, the 2012 semi annual report of Zhejiang Sima Clothing Co., Ltd. seems less prominent. During the reporting period, the operating revenue of Sima Garments in the first half of the year decreased by 16.54% year-on-year to 2.511 billion yuan; Operating profit decreased by 43.41% year-on-year to 338 million yuan; The net profit attributable to the parent company decreased by 43.22% year-on-year to 248 million yuan, corresponding to 0.37 yuan of earnings per share.

The second quarter saw a further decline in revenue, poor performance in casual wear, and negative growth in children's clothing. With the continuous downturn in the situation of clothing sales terminals, and the growing impact of foreign brands and e-commerce on the youth leisure clothing industry, the company's operating income in the second quarter fell 17.3% year on year, increasing the decline compared with the first quarter. In the first half of the year, the company's main brand Senma's revenue dropped by 19.9% year on year, while the company's children's wear brand Barabala's performance was relatively stable, but its revenue also fell by 4.0% year on year, increasing its proportion by 3.7 percentage points to 28.9%.

For the decline in performance, Sima Garments believes that the main reasons are: affected by the macro-economy, clothing demand growth is slow, coupled with the rapid development of international clothing brands and new domestic clothing brands, market competition intensifies, and the company's operating income is lower than expected; With the increase of the company's inventory, the corresponding provision for inventory depreciation increased, and the terminal channel cost and labor cost increased, which increased the company's operating costs; The company has strengthened the construction of the marketing network, especially the construction of the direct sales stores in the core business district, and has invested more funds in product research and development, marketing network and industrial park construction, brand promotion, etc. The efficiency of the above investment has not been effectively reflected in the short term, leading to the increase of the company's operating expenses and the decline of short-term profits.

Galaxy Securities believes that the increase in the ratio of sales and administrative expenses and asset impairment losses is an important reason for the decline in net profit far greater than the decline in revenue. In the first half of this year, the sales expense rate and the management expense rate were 19.0% and 4.3% respectively, and 12.2% and 2.8% respectively in the same period last year. Asset impairment losses increased by 197.3% year on year. Although the financial revenue increased from 15.06 million yuan last year to 77.39 million yuan in the first half of this year, the decline in net profit was still far greater than the revenue. The increase in sales expenses is due to the continuous increase in the construction of marketing networks, especially in core cities, and the investment in product research and development, marketing network and industrial park construction, brand promotion, etc.

CICC said that the problem of the inventory backlog of Sima clothing was aggravated. In the first half of the year, terminal sales were in poor condition and channel inventory pressure was high, which made the growth rate of shipment slower than that of orders. The company's inventory increased by 27.9% compared with the beginning of the period, and the number of days of inventory turnover increased by 62 days on a year-on-year basis. The increase in inventory led to the provision for inventory falling price of up to 100 million yuan in the first half of the year. The development trend of inventory clearing has become the primary task of Sima Garments. Discount stores, factory stores, e-commerce and other inventory clearing channels have been fully launched. The gross profit margin will be under pressure in the next 1-2 years, and the income growth may pick up in the fourth quarter. Product research and development, refined terminal management and supply chain improvement are relatively long-term processes.

In the second half of the year, Sima Garments will take measures to actively respond to market challenges according to the changes in the market environment: optimize the organizational structure, streamline management processes, reasonably control expenses and reduce operating costs; Open discount stores and factory stores, increase e-commerce sales, and speed up the processing of the company's inventory products; Strengthen brand publicity and product research and development, and enrich product styles and categories according to the changing market demand to improve product competitiveness; In addition, it will also increase support for agents, strengthen cooperation with agents, carry out refined training for terminal sales personnel, improve the company's terminal retail ability, promote efficiency and improve the company's sales performance.

Although the performance report of Sima Clothing in the first half of this year was unsatisfactory, it did not hinder its own brand value. It is understood that in mid August, Hurun Research Institute released the 2012 Hurun Brand List in Shanghai. As a Wenzhou brand, "Sima" ranked 65th with a brand value of 6.2 billion yuan, and ranked 20th in the "Most Valuable Private Brand List in China", becoming the first value brand in Wenzhou. This list is based on the 100 most valuable brands in China, of which 39 private brands are among the 100 most valuable brands in China. In addition, "Sima" ranked second in the "2012 Clothing Brand Value Ranking" announced at the same time.