Anta's Revenue Growth Is Still Hard To Solve High Inventory

Here world clothing shoes Hat net Xiaobian introduced to everyone is Anta's revenue doubled profits suffered high inventory awkwardness, retail transformation or the main reason.

The sports brand Anta (Anta store), which has breathed a sigh of relief in inventory in the past year, unexpectedly raised its stock to a new high. Yesterday, Anta released the 2014 interim report shows that the company's inventory reached 791 million yuan in June 30th, up 37.39% over the same period last year. According to Beijing (Beijing store) Business Daily reporter combing the company's earnings since listing, found that this figure has hit its highest value in stock since its listing. Industry analysts believe that the action of retail transformation is an important reason for pushing up inventories, while inventory continues to rise, which will have a certain impact on the launch of new products and capital flows.

according to Anta In the interim report released in recent years, the company's stock has increased continuously since June 30, 2010, until the middle of last year, from 687 million yuan at the end of 2012 to 576 million yuan, however, this decline did not support. At the end of last year, Anta stock rose rapidly to 689 million yuan, and continued to climb in the first half of this year.

As for the reasons for the surge in stock prices, as of press release, Anta did not give relevant explanations. The chairman and CEO Ding Shizhong of the company's board of directors said: "Anta's inventory is at a healthy level, and its inventory is too small, too bad. Too low inventory will affect sales."

Cheng Weixiong, a senior clothing expert, thinks that the reasons for Anta's inventory rise are more. The company's current retail transformation activities, such as closing stores and doing direct battalion, have increased their inventories. According to the financial report, by June 30th, there were 7701 Anta stores, compared with 2013 (2013 stores), the number of 7757 stores decreased by 56 at the end of the year. "Not only that, during this period of transformation, enterprises will increase their product innovation, and whether the new products can be recognized will be tested. In addition, judging from the high inventory situation, Anta has not done enough in its meticulous management. Cheng Weixiong said.

Not only that, clothing analyst Ma Gang said that the transformation of the sports brand's delivery mode during the transformation period is also an important reason for pushing up the stock. "According to the previous" futures system ", the enterprise will give 100% of the order to the dealer in accordance with the deadline. But now the sports brands are trying to change, adopt mixed play, not all delivery, through the market forecast, will leave 20%-30% goods in their own warehouse, to achieve nationwide replenishment. Obviously, this mode is bound to increase the inventory of enterprises.

Especially in the current industry is still in the doldrums, the current situation of depression also affects sales. However, Anta's interim results show that its operating income is 4 billion 120 million yuan, an increase of 22.4% over the same period, and the profit margin of shareholders should be 803 million yuan, up 28.3% over the same period last year. However, behind the double increase of revenue and profit, it is the embarrassment that the stock price has risen nearly 40%. Insiders believe that from this result, Anta's anticipation of the market is too optimistic.

The person also pointed out that the continuous increase in inventory will seriously occupy corporate capital, not only will further affect the performance of the next company, but also will inhibit the pace and output of new products, which is not conducive to brand development when emphasizing "design and speed". Moreover, if overstock is over a certain period, it will be difficult to sell, and a large discount sale will also have a negative impact on the company's image.

Cheng Weixiong believes that there are still many problems in the localization of sports brands in China, such as confusion of leisure and sports, lack of brand soul, lack of functional and personalized product support. "At present, the sporting goods industry has not yet come out of the trough, and it may continue for many years. In the process, many brands will be eliminated."

The industry insiders further said that Anta's performance is climbing rapidly and has reached the top. "However, there are many uncertainties in the success of R & D and supply chain management in the critical period of transformation. There is a lot of uncertainty in the current period of optimism or misjudgement." enterprise More caution is needed.