Brand 2014 Annual Report Shoes And Clothing Enterprises Perform Well

Following CABBEEN, PEAK and 31st degree, last week, the brand of Quanzhou shoes and clothing, such as Li Lang and XTEP, announced the 2014 annual report. Most of the listed companies in Quanzhou shoes and clothing enterprises did well last year.

After nearly two or three years of efforts, the footwear industry in Quanzhou has entered a new era characterized by product and retail innovation.

Li Lang, XTEP and other brand annual reports are not vulgar.

After experiencing the recession of performance decline, inventory crisis and large-scale closure, Quanzhou's shoe and clothing brand ushered in the spring. XTEP, Li Lang, CABBEEN and other local brands recently announced their 2014 results, showing that the curtain of the resurgence of shoes and clothing industry has been unveiled.

In March 9th, the company announced its 2014 annual performance.

The group gained an annual profit of 555 million yuan, an increase of 7.5%, an increase of 5.8% to RMB 2 billion 433 million yuan, a gross margin of 42.6%, a profit margin of 2.7 percentage points to 28%, and a net profit margin of 0.3 percentage points to 22.8%.

Last month, another Quanzhou clothing listed company CABBEEN also announced its annual performance in Hongkong in 2014.

According to the annual bulletin, as of December 31, 2014, CABBEEN's annual operating income was 1 billion 98 million 200 thousand yuan, an increase of 16.4% over the same period last year. Its net profit was about 235 million 500 thousand yuan, an increase of 20.6% over the same period last year, and its earnings per share were RMB 0.33 yuan (0.35 yuan in 2013).

In March 12th, XTEP International announced its 2014 earnings report.

As of December 31, 2014, the total revenue of the company was 4 billion 777 million 600 thousand yuan, an increase of 10% over the same period last year. The share holders should account for 478 million yuan (Chun Li), down 21.12% from the same period last year, and the gross profit margin increased by 11.4% to 1 billion 947 million yuan, and the gross profit margin was 40.8%.

Among them, XTEP's shoe business revenue was 3 billion 43 million yuan, an increase of 35.4% compared to 2013, accounting for 63.7% of the group's total revenue, gross margin of 1 billion 280 million yuan, gross margin of 42.1%.

Footwear products were particularly outstanding in the past year, mainly due to two aspects, namely, continuous sponsorship of running events and increased investment in R & D and innovation of footwear products.

Optimize channels and improve profitability

Inventory crisis is the biggest pain point in the shoe and clothing industry in recent years.

Since 2012, the reform of the channel has been carried out in different ways.

Staged in China.

Mr. Wang Dongxing, chairman and executive director of China's Li Lang, said: "in 2014,

Sales are still weak.

In the past, extensive expansion of men's clothing industry focused on brand wholesale and ignored brand retail. During the period of slowing retail consumption, problems emerged, leading to overstock and closing stores.

However, the Group believes that the inventory clearance of the industry as a whole is coming to an end, and the overall business environment of China's men's wear industry has improved.

It is understood that as at the end of December last year, the number of shops was 3079.

The number of LILANZ stores decreased by 397 to 2783 throughout the year, while the number of L2 stores increased by 21 to 296.

The decrease in the number of LILANZ stores mainly reflects that the company continues to support distributors to optimize the store network.

In terms of sales channels, the group should change its consumption pattern, change its opening strategy in the provincial capital and prefecture level cities, and shift from the street store to the shopping mall.

In the second half of 2014, distributors have set up 10 large stores in shopping malls in various districts with satisfactory sales.

Last year, XTEP also optimized distribution channels, increased the number of distributors from 28 to 37, and closed down less profitable retail outlets. The number of retail outlets was reduced from 7360 at the end of 2013 to 7110, so as to achieve normal inventory level at the retail end.

From 2014 earnings

In view of this, XTEP's inventory situation has improved. As at the end of December last year, XTEP's stock balance was 569 million yuan, up 6% over the same period last year, and the turnover days of inventory dropped from 79 days in 2013 to 71 days.

XTEP expects that the number of retail outlets will stabilize between 7100 and 7200 before the end of 2015, and continue to improve the inventory problem.

Prior to this, PEAK and 31st degree also released a good 2014 annual report. Experts said that the shoe and clothing industry has entered the rational consumption era headed by product and retail management after undergoing major adjustments over the past few years.

At the same time, in order to perfect their own channel construction, allocate capital investment rationally, further enhance brand image, eliminate the crude and extract the essence, and turn off the poor quality stores, the major brands are targeted to expand and optimize their own structure.