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    Seven Wolves Continue To Decline In Profits Will Continue To Explore New Areas To Find Countermeasures

    2016/5/5 23:29:00 23

    Seven WolvesGlidingNew Field

    The first quarter of the garment industry has just passed, and the profits of the seven wolves in the past quarter are still declining. In order to find a solution, the seven wolves will continue to get involved in new fields.

      

    Seven wolves

    The first quarter results released in 2016 showed that the net profit of the company in the first quarter of 2016 was 64 million yuan, down 5.18% compared with the same period last year, due to the reduction of orders.

      

    Performance report shows that in the first quarter of 2016, seven wolves achieved operating income of 709 million yuan, an increase of 11.05% over the same period last year.

    But seven wolves said the company was in the first half of this year.

    Net profit

    Will continue to decline in the 1-6 months of 2016 net profit of 89 million 200 thousand -1.15 billion yuan, down 20%-0.

    Seven wolves explained that the company's order in 2016 will receive a reduction in customer orders, so the first half of 2016 was lower than the same period last year.

    Since 2013, the performance of the seven wolves has been declining and closing continuously.

    According to market information, in the first half of 2014, the seven wolves had 3155 terminal stores; in the first half of 2015, there were 2636 terminal stores, representing a decrease of 519 over the previous year.

    According to the results of the report, the revenues and net profits of the seven wolves fell by 20.23% and 32.44% respectively in 2013. In 2014, the revenues and net profits of the seven wolves decreased by 13.79% and 23.84% respectively. In 2015, the seven wolves increased their operating income by 2 billion 460 million yuan, up 3.02% over the same period last year, but the net profit was only 270 million yuan, and continued to decrease by 5.63%.

    The recession of the solid garment retail industry and the continuous pformation and reform of the company are the important reasons for the decline of the performance of the seven wolves over the past three years.

    Seven wolf said that the main reason for revenue growth in 2015 was the company's new needle spinning business, but the low gross margin of needle spinning business had little impact on the net profit and total profit during the reporting period.

    At the same time, the adjustment process of seven wolves to wholesale mode pformation and reform has led to the income and profit of the original business.

    Main industry downturn and decline in performance

    Men's wear

    The brand wolves continue to get involved in the new field, and begin to adjust their strategy. From a traditional men's clothing enterprise to a "business + investment" enterprise, they set up a Shenzhen Qianhai Efficient Finance Holding Ltd with their own funds and set foot in the financial field.


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