The 700 Million Inventory Of The Nine Herd Kings Has Led To A Decline In Efficiency.

Since October, clothing Listed companies have announced three quarterly results, including the United States, the seven wolves, and the king of nine. Clothes & Accessories The company's revenue is not optimistic. Among them, the first decline in revenue and net profit since the listing of the nine herd kings has attracted market participants to say "there is something wrong with the pants king".

In fact, by the downturn in the clothing industry, the growth trend of the nine Mu Wang is slowly fading away. In 2010 -2012, its net profit increased by 39.53%, 43.8% and 28.96% respectively, and the three quarterly report dropped 9.6% this year. On the contrary, inventory is high.

This year, nine Mu Wang has closed 90 stores.

The three quarter only completed the annual target 64%

In October 19th, the three quarterly bulletin issued by nine herd Wang showed that both operating income and net profit declined in 1-9 months, with a turnover of 1 billion 761 million yuan, a decrease of 1.18% compared to the same period last year, and a profit of 426 million yuan, down 9.6%.

This is the three quarterly report of "double down" which has been handed over since the listing of the nine herd kings. When the annual report was released in 2012, the business plan of 2013 was relatively optimistic. The planned net growth terminal of 60-100 in 2013 was expected to reach 2 billion 750 million yuan, an increase of 5.77% over the 2012 year.

However, in the 1-9 month of 2013, 9 Mu Wang realized only 1 billion 761 million yuan of business revenue, that is, 64% of the annual target. This means that the sales amount of nearly 1 billion yuan in the next fourth quarters will reach the goal of this year. And this is almost Arabian Nights.

2013 was a very unusual year for King Mu.

First, the first quarter earnings showed negative growth for the first time, with a decrease of 8.17%. It was the China Daily, which realized operating income of 1 billion 164 million yuan, down 2.27% compared to the same period last year, and net profit attributable to shareholders of listed companies was 290 million yuan, down 14.02% compared with the same period last year.

　　 Three quarterly report "double down" reproduction

"This year should be the worst year for sales of the nine herd kings." Long term tracking of the nine clothing industry analyst told reporters, "because terminal demand is insufficient, now the franchisee will be very cautious about ordering."

In response to an interview with financial weekly newspaper, "nine Mu Wang" said: "the number of sales terminals has been reduced due to the downturn in domestic and foreign economies and the continued downturn in terminal market consumption, so this year, the company's business performance has declined. In addition, as the company's "two exemption and three reduction" tax concessions expired, the applicable corporate income tax rate increased from 12.5% to 25% in 2013, resulting in a substantial decline in net profit.

The statistics show that the three quarterly report of 13 A share men's clothing enterprises showed that most of the performance had a "big change". At present, only 4 of YOUNGOR, keno technology, card slave road and Shanshan stock company are also maintaining positive profits growth. The days of nine herd kings, Dayang's creation, seven wolves, and wedding birds seemed to be hard.

　 700 million inventory is high.

A private investment director in Shenzhen told reporters, "these two years are difficult for clothing enterprises, because consumer demand is not going to go, but shops rent and labor costs are rising, and are also affected by online shopping. In the past, the high-end men's clothing such as "nine herdmen" can sell clothes by brand, but now some of the demand is diverted by low-end or middle end enterprises, so it is not easy to sell.

Affected by the operating environment, although it was only listed in May in 2011, it has shown a weak sales situation since 2012. According to the business plan, in 2012, 9 Mu Wang should have completed sales of 2 billion 750 million yuan, an increase of 21.8% over the same period last year, but in fact, in 2012, the business revenue of nine Mu Wang increased by 15.24%, far less than the growth rate of 2011 (34.78%).

Behind the decline of performance, it is the king of nine. Stock Level.

At the end of 2011, there was 722 million yuan in stock. By the end of 2012, inventories had been reduced to 650 million. Up to the end of the three quarter of 2013, the king of nine Mu still had 701 million yuan in stock, and nearly approached the highest level in history. Inventory turnover is only 1.09%.

According to the clothing industry researcher who has done research on the end of nine Mu Wang, "nine herdmen is not selling well at present, only about 50%." The so-called sales rate refers to a certain period of time, the proportion of the sale of a certain type of goods accounted for the total purchase, is based on a proportion of the number of incoming sales to recover the cost and cost of the sale of an assessment index.

For the two years' high inventory problem, nine Mu Wang explained in reply: "due to the warm winter climate in 2011 and the advance of the Spring Festival in 2012, the relatively short sales season and other factors have had a certain impact on sales. By the end of 2011, relatively high inventory has become a common problem facing the industry. Since 2011, the price increase effect caused by the rising cost of raw materials and labor in the industry, as well as the macroeconomic uncertainty have been strengthened, the speed of shop opening has slowed down, the activity of shopping malls has increased, and the growth of retail sales has slowed down. Although the company has adopted a series of measures to "go out of stock", its inventory has declined in 2012 than at the end of 2011, but it is still at a relatively high level. On the one hand, the company will digest part of its inventory through e-commerce platforms and parity stores. On the other hand, the company will strengthen the order management, strengthen the terminal retail operation ability, improve the marketability of products, and raise the turnover speed of inventory.

　　 Closing 90 stores and shrinking marketing

In the context of the continuing downturn in terminal sales, in order to control operational risks, nine Mu Wang's investment in marketing network construction has become more cautious and slowed down the progress of opening stores.

In the first half of 2013, nine Mu Wang not only did not add new stores, but closed 59 sales terminals. According to the explanation of nine herding king, "most of the terminals that the company closes this year is mostly franchisees, most of which are street stores. The main reason for the closure of the terminal is that the rent increases too much and the business efficiency is low."

This reporter has been confirmed by the clothing industry analyst office contacted by the reporter. "Well done by the nine herdmen is the shopping mall channel, the exclusive store channel is general."

As of the three quarter, nine Mu Wang has closed nearly 90 franchisees. This is quite different from the 60-100 planned net growth terminals in 2013.

In May 2011, when the listing of nine Mu Wang was listed, it raised 2 billion 553 million yuan, the main purpose of which was to increase the construction of marketing network and to invest 1 billion 320 million yuan.

According to the prospectus, the marketing network project construction period is 2 years. In the first year, 207 stores were built, 131 were built in second years, and 338 new stores were built. Moreover, according to the calculation, the project will generate 616 million yuan in second years without tax.

The actual situation is that the progress of the project is rather slow. As of this year's China Daily, the investment in the marketing network construction project is only 30.06%, and only 23 stores have been built, with a profit of only 199 thousand and 800 yuan.

It seems that there is no timetable for the progress of the investment projects in the future.

　　 Joeone This strategy has been started since last year. "The company will adjust its business strategy in time according to the market environment, and improve its business capability from the serialization of commodities, the operation of multi brands, and the improvement of fine operation capabilities."