H&M, GAP And Other Fast Fashion Brands' Latest Earnings Reports Show A Sharp Drop In Profits.

　　 H&M , GAP , Uniqlo Profit fell in the first half of the year, but plans are still to be increased in China.

In the first six months ended May 31st, the latest financial reports of many fast fashion brands such as H&M and GAP showed a sharp drop in profits. In the domestic market, according to the exclusive statistics of Lian Shang network, more than half of the 37 garment listed companies have declined in the first quarter revenue. On the contrary, many fast fashion brands still have strong driving force in the Chinese market. They plan to add dozens of stores in China this year. Industry evaluation, fast fashion brand performance decline, and product homogenization serious, shop too much.

Related earnings showed that in the first six months ended May 31st, H&M group's pre tax profits plummeted from 22% to $1 billion 240 million, although the turnover increased by 5%, but it was significantly lower than that of the same quarter last year. As of April 30th, GAP group's net sales fell 6% to $3 billion 440 million, while it announced that it would close 75 Old Navy and Banana Republic stores outside North America. The fast selling group of UNIQLO parent company also released the first half of fiscal year 2016, which has declined for the first time in the past 5 years. In the first three months of this year, J.Crew group's net loss was $8 million, and its total revenue fell by 3%.

However, these fast fashion brands still maintain a strong driving force in the Chinese market. It is reported that GAP will open 40 new stores in China this year. UNIQLO will also keep the pace of opening 80 to 100 stores in China this year. H&M is expected to open 60 to 80 new stores in China this year, and KM will invest 600 million in the adverse market, and 300 new stores will be opened in China this year.

Let's take a look at the domestic clothing sector. According to the statistics, the first quarter of 2016, the list of apparel listed companies shows that in the first quarter of this year, 19 of the 37 apparel listed companies declined in revenue, accounting for 51.4%. Among them, both revenue and net profit fell by 10, accounting for 27.03%.

"Take fast fashion as an example. I think there are many reasons for the decline in performance." Roland Begg global partners and vice president of Greater China, Chen Ke said, on the one hand, the global economic downturn brought the demand side down; on the other hand, from the perspective of supply, the quality of clothing products homogenization is serious, shops are more and more, performance is getting worse and worse, and this is the core reason for the decline of performance. In addition, the demand of the emerging population for the lack of personalized products is obviously decreasing.