Three Profit And Profit Decline Of Smith Barney Apparel

Smith Barney

(002269) revenue grew by 5.91% in the first three quarters, but less than 1% in profit growth, especially in the third quarter, which fell 13.4% over the same period last year.

It is understood that the United States from 1 to September this year to achieve total revenue of 7 billion 194 million yuan, net profit of 752 million yuan, of which third quarter total income of 2 billion 594 million yuan, net profit of 320 million yuan.

In this regard, Smith Barney dress frankly, affected by the macroeconomic downturn, since the beginning of this year

Demand growth is slow, and sales pressure of companies joining and direct channel increases gradually, and overall growth presents a trend of quarterly decline.

The company believes that the industry is still not optimistic in the short term, so the cash flow, inventory and scale of production have been controlled, operating cash flow has reached 2 billion, and borrowing has also declined significantly.

Looking ahead to the fourth quarter, the United States believes that the same pressure is still on the way. The net profit is expected to decline over the same period last year, and the decline will not exceed 30%.

Fourth quarter company will strive to reduce business risk, control goods, improve the quality of new stores, speed up inventory turnover, maintain a good level of cash flow, and strive to gradually improve the performance with the gradual recovery of the consumer market.

The report shows that due to the gradual arrival of the winter storage and pre allocation peak period, the stock size of the outside concern has increased from 1 billion 800 million at the end of the year to 2 billion 200 million.

Three the quarterly report is at the peak of the high price winter storage. The stock increase is less than 500 million yuan and is still at a reasonable level. The company's internal control over inventory and scale of production is prudent.

It is noteworthy that, from the three quarterly report, the operating net cash flow in the first 9 months of the apparel market reached 2 billion yuan, an increase of 648% over the same period last year.

In response, the company's stakeholders told the Securities Times reporter that management has estimated the market environment this year, and has begun to adjust its annual business strategy in the two quarter.

This year, the production scale of the company has been greatly controlled. It has played a good role in controlling the outflow of cash. At the same time, the company has intensified its efforts to clean up the inventory and recovered the occupied liquidity.

Because exports are blocked, there are large numbers of outlets.

Garment enterprises have been fighting for domestic sales. Generally speaking, the competition pressure of garment industry is increasing, and the strategic orientation of enterprises has also been differentiated.

Some analysts have pointed out that although the reduction of new products will help control inventory growth and cash outflow, it will also limit revenue growth. However, under the current circumstances, it is easy to understand the adjustment of the annual management strategy of the US state. The company's overall business and decision-making ideas have become steady and no longer blindly pursue expansion. Cash is king's best choice for the current market environment.

In terms of channel, Mei Bang apparel said that in the future, it will continue to improve the strategy of upgrading Direct stores and promoting franchisees.

In the aspects of commodity management, display of goods, store image, service level, supply chain management and other aspects, the management level of direct system is promoted, and output to franchisees through fixed mechanism, so as to improve the overall level of channel management.