Smith Barney Dress Deep In "Do Accounts Door" Clarification Announcement Puzzled Doubts

The United States is deeply bogged down in false accounts. Clothes & Accessories Yesterday, after the resumption, the market plunged and the market panic intensified. After the exposure of the account gate incident, the investment express reporter compared the previous media reports and the company's financial results. There are still many doubtful points about the clarification of the state's dress. First of all, the backlog of the company's stock is an indisputable fact. However, in the past six months, the inventory of nearly 800 million yuan has not been significantly improved. In addition, although the company's accounts receivable increased, but the franchisee's inventory pressure can not be underestimated. For the departure of the core personnel of the company, the essence of the problem is obscured by the index of turnover rate.

　 Question 1: franchisee pressure goods

After making account of the event, United States barrack dress resumption will usher in a sharp fall, volume enlargement. At the end of the close, Smith Barney clothing fell 6.48%, the total turnover of 106 million yuan, the turnover is 5.6 times the previous trading day.

The media's questioning of American Apparel is the company's sales and marketing model. Such as domestic large clothing Brand is similar, and American Apparel is expanding its territory through franchisee's mode. However, due to the premature failure of the clothing industry, the American Apparel has expanded its capacity, and the stock has increased gradually in the past one or two years.

It is because of the pressure of sales that some media reports recently pointed out that the pressure of inventory was transferred to franchisees. It is reported that in the state of the United States, the largest proportion of the inventory is the autumn winter clothing, in order to resolve the stock of listed companies, the United States chose to shift the stock pressure to the dealer's head. A dealer said that the pressure on the terminal channel was too fierce, and the traditional clothing industry was challenged, making the sales pressure of franchisees and distributors very large.

For the transfer of inventory pressure to channel operation, a researcher from the clothing industry of Orient Securities said that the task indicators for franchisees are widespread in the industry. "Especially in the past few years, the macroeconomic downturn has dragged down the retail and consumer market, and the task of the apparel industry channel operators is more arduous, and the order quantity can not be compared with the current comparison."

The analyst also has a long track of American bond clothing. In terms of distribution mode, Smith Barney is indeed a task assignment indicator for franchisees. "But recently, the company has been accelerating its storage speed, and its demand for channel providers has not been as high as before."

One indicator reflects the inventory of American Apparel this year. In the semi annual report, the accounts receivable of Smith Barney clothing decreased from 1 billion 162 million yuan at the beginning of the year to 669 million yuan, a drop of 42%. The company said that the decline in accounts receivable was mainly due to the good implementation of the company's credit policy, and the franchisees who extended the credit period earlier in the current period gradually returned the payment.

In addition, in terms of advance accounts receivable, the index increased in the first half of the year. Semi annual report shows that the United States and the United States apparel accessories in the early period of the early sale of 27 million 200 thousand yuan, to the end of the period increased to 29 million 240 thousand yuan. In the parent company's report, the initial receipts were 54 million 270 thousand yuan, which increased to 137 million yuan at the end of the year, and doubled in half a year.

"The decline in accounts receivable and the increase in accounts receivable indicate that the speed of franchisee payment is faster than before, and that the channel operation departments can afford the funds better than before." The explanation explained that the indicators for franchisees are a rule of conduct and are hard to avoid.

　 Question two: half a year consumption 800 million gross margin unchanged

If we say that the pressure of franchisee's reduction is reduced, but in the half year's time, the cost of US $800 million has been reduced.

"This is mainly due to the large number of old goods sold in the US, and the decline in the output of new products, which makes the company go to stock quickly." The Clarification Announcement of Mei Bang dress also corroborated the analyst's view. According to the company announcement, in the first half of this year, the direct retail terminal system maintained a growth of 22%, which provided strong support for effectively reducing the scale of the inventory. At the same time, in order to control the scale of the inventory, the purchase of new products decreased by 29% compared with the same period last year. By the end of 6 2012, inventories had fallen by 800 million yuan compared with the beginning of the year.

A top four senior accountant said that if it is fast going to inventory, and with more and more funds coming into account, the company's profitability in the reporting period should be enhanced. However, the semi annual report of the United States did not reflect the profitability of the products. According to the product classification, in the first half of this year, the gross margin of apparel and Bottomwear decreased by 1.35% and 1.08% respectively, and the profitability of the products was basically unchanged.

{page_break}

　 Question three: the turnover rate is difficult to conceal great changes.

Because of the trouble caused by inventory, the company's internal staff turnover, some of which are the core managers of the company.

In the face of doubt, the US state clothing refute the index of turnover rate. Clarification announcement said that since 2010, the total number of managers and managers of the company's departments has always been stable at around 300 people, the turnover rate in 2011 was 9.3%, and the turnover rate was 10.9% in 2012. Apparel retailing industry It has always maintained a more reasonable level.

However, according to media reports, the recent departure of employees in Smith Barney is not an ordinary employee, but a company's equity incentive target.

In 2010, the United States announced that it had equity incentive for 200 top and middle managers. Despite the unsatisfactory results in 2009, executives with equity incentives still expressed optimism about the company's prospects.

Against this background, the United States has awarded 1 million 800 thousand stock options to 7 executives, including Vice President Wang Quangeng and Xu Weidong, and the other 193 core technology and management personnel have received 3 million 885 thousand stock options. Behind the broad stock rights incentive, Zhou Chengjianqiang reveals the strong heart of the US bond owner. There was once a manager with equity incentive qualifications, who said: "the company has broad prospects for future development and stock options will hold for a long time."

However, it did not last long. With the inventory problem of American state continued to ferment, some managers who were motivated by equity incentives chose to leave. According to media reports from the company, in November 2010, the United States announced the 185 equity incentive list, including 7 vice presidents, 17 directors and 161 department managers. Among these people, there are now less than 40 people leaving the United States, accounting for more than 20%.

Compared with the media coverage, the interpretation of the US state can not be accepted. If only the turnover rate is taken as an indicator, it is clear that the number of company turnover is at a reasonable level. However, the recent turnover is not the ordinary employees, but the core managers of the company. The resignation of this part of the staff has great impact on the management of American Apparel.