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    The Mainland Sportswear Industry Should Prepare For The Winter

    2013/8/13 20:23:00 22

    SportswearClothing IndustryGarment Enterprises

    Last week, Lining announced the first half performance of the Hongkong stock exchange. The company continued to lose 184 million yuan last year.

    At the same time, on the basis of shutting down more than 1800 outlets last year, the company reduced 410 stores in the first half of this year.

    < /p >


    < p > the situation of other leading enterprises is also not ideal.

    Anta's net profit in the first half of the year has recorded a decline of nearly 20%. Nike's 2013 earnings report as at June showed that China's market income fell by 5% over the same period last year.

    The industry believes that, in addition to inventory has not yet been cleared, another reason for the decline in performance is that the early expansion of various enterprises channels but encountered a weak consumption.

    < /p >


    < p > it is disclosed that Lining achieved 2 billion 906 million yuan in operating income in the first half of this year, down 24.6% compared with the same period last year.

    In terms of brand names, the Lining brand declined by 28.4% compared with the same period last year, of which < a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > fell 35%, a target= "_blank" href= "http://www.91se91.com/" > shoes < href= > category 22.7%; and the shrinking brands of "," and "brand" were even less to say, overall revenue fell 40%.

    In this case, the red double happiness, which is mainly equipped with equipment, has become the only bright spot in the company's brand series. It has gained 23.4% growth and the proportion of the company's total revenue has increased 5 percentage points to 13%.

    < /p >


    < p > it is worth noting that the gross profit margin of the company's "a href=" http://www.91se91.com/news/index_c.asp "> shoes and clothing" /a "is still at 44% level, basically unchanged from the same period last year.

    The main reason for the company's still larger losses is that, in the case of declining income, the sales cost still rises to 1 billion 210 million yuan, and the proportion of its operating income rises to 41.6%.

    < /p >


    < p > market participants believe that this shows that the company is still trying to go all out while shrinking its front line.

    On the one hand, Lining continued to "cut" surplus stores in the first half of the year. At present, the number of company outlets has further dropped to 6024; on the other hand, the company has increased investment in key projects such as basketball, including the key construction and promotion of CBA and sponsored NBA star Wade.

    < /p >


    < p > Lining has made such a radical change. At present, the effect is not obvious.

    From the inventory clearance situation, the average turnover period of the channel dropped from 9 months to 7 months, but still at a high level. At the end of the reporting period, the stock depreciation allowance was 461 million yuan, which was about 20% lower than the 586 million yuan at the beginning of the year, but the operating cash flow is still a net flow of -2.43 billion yuan.

    At the same time, it is hard to predict whether the "heavy gold beating contract" can achieve the expected effect. There are many controversies over whether the Wade's ten year 100 million dollar signing fee is overestimated.

    < /p >


    < p > Anta's turnover in the first half of this year was 3 billion 367 million yuan, down 14.4% compared to the same period last year, and its profit was 626 million yuan, down 18.7% compared with the same period last year.

    In terms of outlets, Anta sports life shop reduced 241 to 7834 from 8075 at the end of 2012, and the number of children's sporting goods stores decreased from 22 to 811.

    < /p >


    < p > compared with Lining, < a href= "http://www.91se91.com" > Anta < /a > no matter the operation or financial situation is more stable, but Shenyang Wanguo (Hongkong) still gives a "sell" rating.

    The agency believes that advertising sales expenses fell by 18.5% in the first half of 2013 due to the decrease in sports sponsorship, but there will be a marked increase in the second half of this year.

    Moreover, the fierce competition and the pformation of sales channels have led to a net closed shop in the next two years.

    In the next few years, limited revenue growth and rigid growth in operating costs will drag on profit margins.

    < /p >


    < p > Nike and Adidas Greater China.

    In the 2013 fiscal year ended in June 30th, the income of Nike Greater China decreased by 5% compared to the same period last year. This is the only growth area in Nike's six largest sales area.

    Nike's chief financial officer, Don Blair, warned that greater China's revenue will also decline in the next half fiscal year.

    < /p >


    The performance of Adidas was slightly better than that of P. In the first half of the year, its sales in Greater China increased by 6%, but far below the 19% growth rate in the same period last year.

    < /p >


    < p > industry insiders say that in the foreseeable future, a href= "http://www.91se91.com/news/" > sportswear < /a > enterprises may still have to prepare for the winter, "while we need to contract the early expansion of the channel too fast, we should aim at the consumer mentality of the weak economic recovery pattern and make targeted marketing."

    < /p >


    < p > from the sports a href= "http://www.91se91.com/news/" > clothing enterprise < /a > has already announced the four quarter order meeting situation, also confirms the above view.

    The number of orders this winter will drop by 17%.

    XTEP said the company's orders would decline from 15% to 17% last year.

    Only Anta is in a better position, the order amount will drop by about 5% to 15%, and the order volume of the order will appear in the first quarter of next year.

    < /p >

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