Garment Industry Recovery: Collective Performance Of Garment Enterprises

Affected by macroeconomic downturns, changes in consumer attitudes and

Shock,

The industry has become increasingly difficult in recent years.

Recently, however, the garment industry is showing signs of recovery.

According to the world clothing and shoe net, after three consecutive years of decline, in the 2017 fiscal year, Bosideng revenue increased and profits increased by 40%.

In the first quarter of this year, the total profit of garment enterprises listed on A shares rose by 15%, far exceeding the same period last year.

The international parity fast wear giant continues to expand in China.

In the case of most brands in China, the number of UNIQLO stores is expanding. Over the past five years, the number of overseas stores in UNIQLO has increased by more than two times.

Bosideng's performance report recently showed that the total revenue in fiscal year 2017 (up to the end of March 2017) was 6 billion 825 million yuan, up 17.6% from the same period last year, and net profit was 392 million, up 39.48% from the same period last year.

This reversed the previous avalanche slide. From 2013 to 2016, Bosideng's revenue dropped from 9 billion 338 million to 5 billion 808 million, or 37.81%, and net profit plunged by 73%.

The picture shows the total revenue and net profit of Bosteng in the past year based on the financial report.

Even in the bull market of Hong Kong stock market, the market value of Bosideng also dropped from HK $13 billion in the middle of 2013 to HK $6 billion 500 million in early June this year, which has shrunk by nearly half.

After the latest performance announcement, Bosideng shares rose for several consecutive days.

In the clothing industry, due to overcapacity, brand competitiveness decline, new trend of electronic sales, driven by changes in consumption habits and many other factors, over the past few years, the clothing industry has gone through a fierce wave of closing shop.

Bosideng's situation is particularly grim. Its number of stores has decreased from 13009 in fiscal 2013 to 4292 at present. Even in the 2017 fiscal year, its number of stores has also decreased by 979.

Bosideng said in its earnings report that over the past few years, it has moved from a traditional business model that relies on opening stores and focusing solely on wholesale business to a more retail mode that is more close to the market and consumers.

In terms of financial indicators, the pformation of Boston seems to have achieved certain results.

In the 2017 fiscal year, when Bosideng was close to thousands of stores, its revenue not only declined but increased.

Take its main business down jacket as an example, the income of its brand down clothing business in the fiscal year is 4 billion 579 million, up 15.1% over the same period.

What is more noteworthy is the rare rise of Bosideng's gross margin, and its gross profit margin increased by 1.3 percentage points to 46.4% in the 2017 fiscal year.

Garment industry recovery: collective performance of garment enterprises

Not only Bosideng, but the performance of many garment companies listed on the Hong Kong stock market is improving.

Take the Chinese listed company in China as an example. In 2016, its revenues and profits both fell by more than 10%. But in the annual report of 2016, Wang Dongxing, chairman of China's Li Lang, said that the order volume of 2017 orders increased, and the number of orders increased.

In the recently released performance report, the total volume of orders for the 2017 winter order in China recorded double-digit growth. As of the end of May this year, the number of distributors in the same store also recorded an increase in the number of units.

In addition, the performance of clothing companies listed on A shares is also improving.

In the 17 garment enterprises listed on A shares (before 2014), the total revenue in the first quarter of 2017 was 14 billion 304 million, up 5.97% compared to the same period last year. Net profit was 1 billion 849 million, up 15.56% from the same period last year, which was only 5.76% during the same period last year.

The picture shows the total revenue and net profit of A share clothing listed companies (listed before 2014) based on Wind data.

As a matter of fact, China's textile and garment industry has been revived as a whole.

According to the National Bureau of statistics, as of the end of May this year, China's textile and apparel business owners' business revenue was 922 billion 500 million, an increase of 7.7% over the same period last year, with a total profit of 52 billion 230 million, an increase of 9.4% over the same period last year, and the growth of revenue and profits was much higher than that of the same period last year.

The following is a picture of the growth of China's textile and apparel revenue from the BD data drawn from the National Bureau of statistics.

The resurgence of the garment industry is giving rise to a new wave of clothing enterprises' listing. In the short half year since the end of December 2016, 6 garment enterprises have been listed on A shares, and in the past four years, only 5 garment enterprises have been listed.

Giants are more fierce: UNIQLO overseas stores have doubled two times in five years.

When the domestic clothing enterprises are getting warmer and warmer, and finally looking forward to the long resumption of growth, the overseas prices are still on the offensive.

In fact, even in the past few years, when domestic clothing companies have been closing up, giants are still expanding their physical stores, even in the Chinese market, such as UNIQLO.

China and Thailand securities research reported that between 2013 and 2015, most domestic brand stores decreased by more than 15%.

But the number of stores in UNIQLO has been increasing over the past few years.

According to the financial report, as of the end of February this year, the number of overseas stores in UNIQLO was 1029, an increase of 139 compared with the same period last year.

In fact, over the past five years, the number of overseas stores in UNIQLO has increased by 737, an increase of 2.52 times.

Below is the trend of the number of overseas UNIQLO stores drawn by bakery finance and financial reports.

The rapid expansion of UNIQLO overseas stores is closely related to the rapid growth of the performance in the Greater China region, especially in the mainland.

The fast selling of UNIQLO's parent company did not list the number of stores in Greater China, but the revenue data showed that the 2016 year of revenue in the Greater China region overseas UNIQLO revenue was 332 billion 800 million yen, accounting for 50.77% of overseas UNIQLO.

Despite its failure in exchange rate and price strategy, UNIQLO suffered a profit decline in the 2016 fiscal year.

But in the long run, the growth of UNIQLO's performance is much better than that of domestic garment enterprises.

In the middle of fiscal 2013, in the middle of 2017 fiscal year, the sales revenue of Fast Retailing of UNIQLO parent company increased by 65.65%, and net profit increased 48.56%.

In addition to UNIQLO, Coach, a lightweight luxury brand, has grown in the past few years.

In the 2016 fiscal year (end of June 2016), its net profit increased by 14.44%, and the net profit of 2017 in the first three quarter (up to the end of March 2017) was 439 million US dollars, rising 15.91% again.

CITIC construction and investment research reported that the growth of Chi Chi achieved a strong trend of growth against the Chinese market. In the 2016 fiscal year, it launched a series of 14 open shops in China, and a series of measures such as category expansion.

The revival of the industry has brought a hint of warmth to the struggling garment enterprises. However, under the aggressive expansion of overseas brands, the challenges faced by domestic apparel brands are still grim.

More interesting reports, please pay attention to the world clothing shoes and hats net.