2013 Annual Report Analysis Of Men'S Clothing Sector Facing Channel Adjustment

< p > after the sports brand annual report has been released one after another, Fujian's men's wear has also ushered in the release period of the "pcript".

If the sporting goods industry is beginning to show "warmth", then the men's wear plate is emitting a wave of "chill".

The 2013 annual report of the seven wolves shows that the company's performance has changed over the past ten years, and the performance has declined for the first time. The decline in revenue and net profit is more than 20%. The earnings report of Lee Lang also shows that the company's operating volume and net profit in 2013 have dropped by 17.7% compared with the same period last year, which contrasted with the previous surge.

< /p >

< p > some people say, "a target=" _blank "href=" http://www.91se91.com/ "> clothing < /a > industry is going to prepare for the winter.

< /p >

< p > < strong > domestic menswear performance landslide > /strong > < /p >

< p > annual report shows that the total revenue of seven wolves last year was 2 billion 773 million yuan, down 20.23% from 2012, and the net profit attributable to shareholders of listed companies was 379 million yuan, down 32.44% from the previous year.

The main business revenue was 2 billion 630 million yuan, down 20.58% compared to the same period last year.

The company said that the impact of terminal weakness since 2012 on the company's performance began to focus in 2013.

Data also show that sales of all five categories of products are negative.

However, the company's cash flow performance is good. Since 2013, the seven wolves recovered more sales tax and reduced taxes and fees. The net cash flow generated by the company's business activities was 683 million, an increase of 55.92% over the same period last year.

< /p >

< p > Le Lang also appeared the first performance decline since its listing in 2009.

According to its earnings report, the turnover and profit of the men's clothing were almost 20% lower than the same period, and the range was 17.7%.

It is reported that in 2013, the sales volume of Le Lang dropped by 17.7% to 2 billion 299 million yuan compared with 2012, which is the lowest value of the company's financial data in the past three years.

The company explained that the reduction in turnover was mainly due to no significant improvement in retail terminal sales and the company's digestion of old product channel inventory.

In the same way, to help distributors clean up channel inventory and other reasons, the company's other financial data "annual profit" decreased by 17.7% to 516 million yuan over the same period last year.

< /p >

< p > these data indicate that the performance of Fujian men's men's clothing has been increasing year by year, and there was a turning point last year.

Looking at the whole country, the garment industry has experienced the "Waterloo" last year after several years of rapid expansion. The 5 profits of Hinur, Busen, Georges white and Busen have declined in the past year.

< /p >

Sales of 50 large retail enterprises announced by China Business Information Center (P) also showed that garment retail sales increased by 4.1% over the same period in 2013, and the growth rate dropped 5.9 percentage points over the previous year.

Among them, men's wear sales were the most obvious, and retail sales fell 0.6% year-on-year.

The overall price center of clothing decreased by 2% compared with 2012, which is in sharp contrast to the growth of about 10% in previous years.

< /p >

< p > < strong > industry usher in a pformation period of pain < /strong > /p >

< p > 2011 and 2012 were two years of expansion of the seven wolves. In 2011, there were 3976 terminal channels in the company. The weakness of domestic demand appearing in 2012 failed to prevent the expansion of the seven wolves, and its terminal channels increased by 31.

However, the bitter fruit of expansion began to emerge in 2013.

The annual report shows that the inventory of goods reached 7 million 461 thousand and 100 last year, an increase of 15.24% over 2012, while that of inventory accounts for 0.61% of the total assets of the company, but the total value of inventory increased from 566 million in 2012 to 657 million yuan.

< /p >

< p > in the face of declining performance, the seven wolves closed their stores for the first time in three years. As of the end of the reporting period, the company had 3502 terminal channels and closed 505 stores in one year.

At the same time, the company accelerated the construction of factory stores and discount stores, and opened 7 factory stores last year, providing support for the rapid clearance of channel inventory.

< /p >

< p > reducing inventory is also one of the main tasks of 2013.

At the beginning of last year, Mr. Li said that the total purchase amount of its main brand "LILANZ" autumn order meeting fell by 26% compared with the previous year because of the higher inventory in 2012, and the group encouraged distributors to sell the off-season products as soon as possible.

In the year 2013, the company continued to strengthen routine sales channel monitoring, and encouraged distributors to promote sales through various measures, including opening special stores thirty days before the opening or renovation of stores, and opening temporary stalls in department stores, so as to actively clean up non seasonal inventory.

< /p >

On the eve of the Spring Festival, P also handled the off-season clothing prices of all major stores in the form of "year-end sale". The lowest price was less than ninety percent off of the tag price.

It is understood that through this move to inventory effect is obvious, a large number of cash flow can quickly return.

< /p >

< p > Li said that the channel inventory of the company in 2012 and before has been largely cleared up, and the channel inventory of the products in 2013 is also close to the health level.

According to the report, the inventory balance of the company dropped 3.3%, but the average turnover period increased by 21 days to 76 days.

< /p >

< p > Huatai Securities analysts believe that the annual performance of the clothing industry is lower than expected. The main reason is the closing of stores and the recycling of distribution channels. Shenyang Wanguo Securities analysts believe that the Fujian a href= "http://www.91se91.com/news/index_f.asp" > men dress < /a > prevailing pressure is mainly based on the joining mode. It is expected that the 2014 orders for the seven wolves will still fall but the decline will be narrowed, and the turning point of the company's profits still needs to wait.

< /p >

< p > Cheng Weixiong, a clothing industry expert, believes that the decline of the performance of Fujian clothing is inevitable in a sense. The original mode of the whole industry is too simple, and the homogenization of products, promotion and positioning is serious, so the so-called differentiation is just a brand difference.

< /p >

< p > < strong > sports goods industry also experienced < /strong > < /p >.

< p > although the "shut shop phenomenon" appeared in the men's clothing industry in a large scale, it was considered by the industry to be "broken wrist to stop bleeding".

Even in the sporting goods industry, where the business situation has improved, rough estimates of annual sports reports show that the total number of major sports brands closed in 2013 exceeded 3000.

Data showed that Lining closed 1821 stores last year, and the number of PEAK's retail outlets was reduced by 471. Anta, the best performing group, reorganized more than 500 stores.

In its annual report, 331 degrees said retailers were encouraged to close down poorly performing retail outlets.

< /p >

< p > although closing shop is still a common phenomenon in the industry, but from the annual report published in 2013 this year, the sporting goods industry in Fujian has already recovered.

Data show that in 2013, Anta achieved operating income of 7 billion 281 million yuan, net profit of 1 billion 315 million yuan, XTEP realized revenue of 4 billion 340 million yuan, net profit of 606 million yuan, realized revenue of 3 billion 583 million 500 thousand yuan at 31st degree, and 210 million yuan of net profit; PEAK achieved 2 billion 613 million yuan in revenue and 240 million yuan in net profit.

< /p >

According to a research report released by J.P. Morgan, a leading investment bank in the world known as P, in recent months, the business situation of China's sports and leisure clothing companies based on Fujian has been improved, the inventory level has been controlled, and the worst time has passed. 2014 should be the year of recovery.

< /p >

< p > Shenyang Wanguo Securities analysts believe that men's terminal sales pressure is still greater, the enthusiasm of franchisees to order is poor, the overall channel is in the adjustment stage, but with the leisure clothing channel inventory cleaning up more thoroughly, orders will gradually narrow down, the overall number of channels has dropped, the industry adjustment is coming to an end.

The correlation analysis also predicted that the us a target= "_blank" href= "http://www.91se91.com/" > clothing "/a" could earn a positive return in the second half of the year, and Semir clothing revenue could achieve positive growth.

< /p >

< p > Shenyin Wanguo research report also believes that < a target= "_blank" href= "http://www.91se91.com/" > brand clothing < /a > rely on the growth mode of opening shop has come to an end.

Market segmentation and channel diversification are the future directions.

And Hongyuan Securities Research Report believes that the two most clear investment opportunities come from the upstream industry chain < a target= "_blank" href= "http://www.91se91.com/" > textile < /a > manufacturing leader and the middle and lower reaches of the Internet and retail gene brand channel providers, the adjustment and pformation trend of the traditional midstream brands will continue.

< /p >