United States Inventory Difficult To Digest

In October 17th, the United States was bogged down in false sales and artificially adjusted income.

Continued downturn in the market, once hit the lowest price since July 2010 - 16.33 yuan / share.

At the end of the close, Smith Barney's clothing and newspaper was 16.53 yuan / share, a decrease of 1.31%, compared with the closing price of 17.91 yuan / share last Friday, in a short period of two days, the total market value of the US state clothing was evaporated by 1 billion 280 million yuan.

A few days ago, the media reported that

Questions about inventory digestion and financial accounts.

The report starts with the statement of the state of the United States, and thinks that it is suspected of financial fraud because of the fact that the virtual distribution operation is carried out on the books as a result of the advance allotment.

In addition, media reports said, "in the first half of 2012, the digestion of the 800 million inventory of Smith Barney clothing was suspected of false sales and artificially adjusted income."

On the 15 day, Smith Barney wore an emergency temporary suspension, and released the longest clarification notice in the history. It explained the problems in the media reports, such as the pressure from the company to the franchisee, the decline of the company's stock and the flow of personnel.

"At present, there is a saying in the industry.

If the company does not add production this year, the inventory can also be sold for two or three years. Now inventory is already a problem in the whole industry, not just a company problem.

The inventory is relatively large, so now they are pushing for it.

A researcher from Minsheng Securities Research Department told reporters.

Judging from the whole trend, China's

Clothing companies, especially brand companies, began in 2007.

At that time, rent, labor costs and inflation were relatively low. Compared to the current situation, the brand started slowly at that time, and many companies were trying to open shop and bulk cargo after listing, which caused great pressure on the terminal.

According to the above researchers, if the economic development and domestic and international demand are normal, the problem of cargo loading is not large. But since the financial crisis in 2008, the whole consumer group is gradually shrinking. Under such circumstances, the stock pressure of the listed companies will eventually form a high inventory situation.

It is worth noting that in the first half of this year, the United States and costumes control the stock size and reduce the purchase of new products, resulting in a decline in revenue growth.

At present, the warehousing of goods in autumn and winter has increased the inventory relative to 2 billion yuan, and the operating cash flow has also decreased to 500 million -6 billion yuan. The three quarterly results are expected to be lower than expected.

"If the problem has happened, we should take the initiative to reduce the development speed of the enterprise. After digesting the inventory, we will consider the direction of the enterprise's development and slowly expand from extensive development to meticulous development. This will cause the pain and the continuous cycle will be longer."

The researcher recommends that if we only pursue constant discount, we will have a certain impact on the brand.