Inventory Of PEAK Finished Products Is Still Rising, Earning Less Than 21% Last Year.

< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > > PEAK < /a > earn less than 21% last year, the worst since listing. < /strong > /p >
< p > the "high inventory sequelae" which had plagued the company at last showed signs of improvement. PEAK sports, a domestic sporting goods listed company, released its annual report last week. As of December 31, 2013, the company's inventory was 366 million yuan, down 5.18% from 386 million yuan in 2012. < /p >
< p > this result is not easy, but with the decline of inventory, a lot of financial data of company turnover, gross profit and net profit have decreased in varying degrees. The company's annual report shows that the company's operating income last year was 2 billion 613 million yuan, down 10% compared to the same period last year, and net profit was 244 million yuan, down 21.3% compared to the same period last year. < /p >
< p > Wind data show that the company's revenue last year and < a href= "http://www.91se91.com/news/index_c.asp" > net profit < /a > all hit the lowest level since 2009. In 2011 and 2012, net profit fell by 5.4% and 60.1% respectively. < /p >
< p > for the decline in performance, the explanation given by the company is mainly attributable to the continuous and extensive inventory clearing activities in the first half of 2013 and the negative impact of the weak economic conditions on the demand for new products during the year. < /p >
< p > it is worth noting that although PEAK sports net profit has declined for three consecutive years, the remuneration of senior executives is still rising. The annual report shows that as of December 31, 2013, executive director Xu Jingnan's remuneration amounted to 1 million 523 thousand yuan, up 24.53% compared to 1 million 223 thousand yuan in 2012. Last year, Xu Zhihua and Xu Zhida paid 1 million 623 thousand yuan and 1 million 523 thousand yuan respectively, and three executive directors totaled 4 million 669 thousand yuan, up 11.99% from 2012. < /p >
< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > > finished products < /a > inventory is still rising, and domestic net stores are closed 471.
< p > after 2008-2009 years of "barbaric" expansion, domestic sporting goods companies appeared to have high inventories in 2011, and the whole industry has fallen to a low point. "The sequelae of high inventories have had a great impact. Over the past two or three years, almost all sporting goods companies have been clearing stocks." Insiders pointed out. PEAK is no exception. In order to solve the problem of high inventory, the company resorted to multiple combinations: reducing costs, adjusting product mix and providing discounts to distributors. < /p >
< p > data show that the total sales and distribution expenses in 2013 amounted to 334 million yuan, representing a decrease of 27.6% compared with 2012. The company said that this was mainly due to the reduction of advertising and promotion activities last year, while reducing subsidies to distributors and performance bonuses. < /p >
< p > because last year, the company's clothing product inventory was larger than the stock of footwear products. In the aspect of clothing product sales, the company offered more special discount to distributors to promote sales strategy, resulting in the proportion of footwear products in total turnover from 46.4% in 2012 to 40% in 2013, while the proportion of clothing products increased from 51% in 2012 to 57.7% in 2013. Annual report data show that PEAK footwear products revenue last year was 1 billion 44 million yuan, down 22.5% compared with the same period last year, while clothing products turnover increased by 1.9% to 1 billion 509 million yuan. < /p >
< p > promotion means a double-edged sword, while reducing the impact of weak demand on clothing products in 2013, it also reduces the company's performance. Annual report data show that last year, the gross profit margin of footwear and clothing products decreased by 0.8 percentage points and 1.5 percentage points respectively from the gross profit margin in 2012. < /p >
< p > besides, the China Securities Network also noted that although the total inventory of PEAK has decreased by 5.18% last year, this is mainly due to the decrease in stock of raw materials and WIP, and the inventory of finished goods is still rising. The annual report shows that last year, the total inventory of the company was 365 million 693 thousand yuan, compared with 386 million 357 thousand yuan in 2012. Of which, the raw material was 44 million 762 thousand yuan, which was 45 million 633 thousand yuan in 2012, down 1.91% from the same period last year. The WIP was 68 million 338 thousand yuan, and it was 88 million 244 thousand yuan in 2012, down 22.56% compared to the same period last year. The total inventories of nearly 70% of the total inventories were 252 million 593 thousand yuan last year, and 252 million 480 thousand yuan in 2012, an increase of 4.48% over the same period last year. < /p >
< p > as we all know, closing stores with poor management benefits is ultimately aimed at coordinating inventory clearance and recovering some losses. PEAK, a crazily expanding company in the early years, is still implementing the strategy of closing stores last year. The annual report shows that domestic retail outlets have decreased by 471 year-round, while the number of retail outlets has shrunk from 6483 at the end of 2012 to 6012 at the end of 2013. < /p >
< p > < strong > six sports brand performance collective decline industry: confidence is the worst time has passed, < /strong > /p >
< p > in fact, sports goods companies in China last year were generally in the low ebb. XTEP released its annual report on the same day with PEAK sports. Net profit fell 25.2% to 606 million yuan last year. Gross profit margin fell 0.5 percentage points to 40.2% during the reporting period, mainly due to the adjustment to wholesalers' discount during the period, from 60% to 62%. < /p >
< p > Wind data show that in addition to the two listed companies, Lining, 31st degree, China trend, Anta sports, and noble birds have released annual reports and performance notices. Lining's net profit has picked up by 11.55%, but net profit is still losing 2 billion 208 million yuan. Net profit fell by 55.19% last year, and its net profit fell 37.58% in 2012. China's trend, Anta sports net profit decreased by 2.95% and 3.23% respectively. The A shares listed companies predicted that net profit fell by 20% last year. < /p >
< p > it is worth noting that after more than two years of adjustment, PEAK's performance has begun to show signs of improvement since the second half of 2013. In March 12th, PEAK also announced the third quarter of this year's order meeting data, total annual orders increased by 10% to 20%. The same store sales in 2013 (at retail prices) showed an increase in the low unit number compared with the same quarter in 2012. This is the two quarter of PEAK's Quarterly Orders and single store sales growth. < /p >
< p > the company said that the distribution channel inventory level and retail level profitability gradually improved in the middle of the month, or that there will be a moderate recovery in the future. The company is optimistic that demand for sporting goods will rebound after this cycle, and is expected to regain sales growth in the near future. < /p >
Ding Shuibo, chief executive of XTEP, still expressed concern about this year's market. "It is still expected that this year will be a more difficult year for the industry because of the sharp improvement in non consumption this year," P said. Hongkong Wenhui cited its view. But he said he was confident that the worst was over. < /p >