Recent Fashion Trends: H&M And ZARA Are In Trouble. UNIQLO'S Overseas Revenues Surpass Japan'S First.

Simply combing the latest performance of fast fashion brands, we find that many brands have been caught in the "development bottleneck": ZARA's growth has slowed sharply, and H&M, Gap and other performances have declined.

Compared with the above brands, UNIQLO and I.T's performance is very bright. Among them, the sales and net profit of UNIQLO parent company XXX group achieved double-digit growth in the 2018 fiscal year. The overseas market revenue of UNIQLO first surpassed the Japanese market, and I.T's profit rose nearly 90% in the first half of the year.

In the three months to August 31st, H&M group increased 9% to 55 billion 800 million Swedish KRAS (about $7 billion 160 million) in the three months to August 31st, compared with the expected 5.5% of the market, which was 4% from the fixed exchange rate, superior to 1.9% of the market forecast, mainly due to exchange rate changes.

During the period, pre tax profit of H&M group dropped sharply from 20% to 4 billion 12 million Krone (about $454 million) compared to 16% over the same period.

Operating profits also fell by 19.5% to 3 billion 976 million kronor (US $450 million), down from 4 billion 160 million krona, which was expected by the market.

It is worth noting that in the three quarter, H&M group's online sales increased by 32% year on year, even faster than Zalando SE (ZALG.DE) and ASOS PLC (ASC.L), the two largest pure fashion providers in Europe.

According to the latest news, IKEA holdings company's $190 million stake in H&M group has gained 0.6% of the latter.

H&M, with IKEA, will have more in-depth layout in the home field in the future.

In addition to the home area, H&M is also overweight.

It and Italy

The brand Moschino will jointly launch the Moschino x H&M series including pet clothing in November.

UNIQLO overseas market revenue first surpassed Japanese market

In October 11th, the fast selling group of UNIQLO parent company released its 2018 financial year earnings report, and its brand UNIQLO's overseas market revenue surpassed that of the Japanese market.

In the 2018 fiscal year ending August 31st, sales of XXX group surged 14.4% to 2 trillion and 130 billion yen (131 billion 400 million yuan) compared with the same period last year. Net profit rose 29.8% to 154 billion 811 million yen (about 9 billion 500 million yuan), closing to the 10 billion mark.

It is worth noting that in the 1 trillion and 760 billion Japanese yen of UNIQLO's revenue, the Japanese market accounted for 48.9%, the overseas market accounted for 51.1%, and the overseas market sales exceeded Japan's regional sales for the first time.

Among them, the same store sales in the Greater China region continue to grow. The strong online sales performance has accounted for 15% of the total revenue in the Greater China region and recorded double-digit growth.

Same store sales continued to achieve double-digit growth.

It is reported that Liu Qi, founder of UNIQLO, will retire and has appointed two sons as directors of the group. They will be formally appointed at the shareholders' meeting in November 29th.

But Ryui Masa stressed that this does not mean that his son will take over the power of the company.

ZARA growth slowed sharply

At the beginning of September, Zara parent Inditex group released its first half performance data, and sales increased by 3% to 12 billion 30 million euros in the 6 months to July 31st, gross profit margin was 56.7%, EBITDA (tax profit depreciation and amortization profit) increased 2% to 2 billion 300 million euros, and net profit also increased 3% to 1 billion 410 million euros.

It is reported that the overall sales of Inditex group rose 11.5% to 11 billion 670 million euros in the same period last year, and gross profit increased 11% to 6 billion 600 million euros compared with the same period last year, while net profit increased 9% to 1 billion 370 million euros.

Obviously, Zara's performance has slowed down considerably.

During the period, Inditex Group recorded growth in all regions, and sales in Spain accounted for 16%. In addition to Spain, the European market has become the largest market, accounting for 44% of total sales and 15% of North American market sales, including 25% of China's Asian and regional sales.

Gap group's overall performance in the second quarter of fiscal 2018 was good, sales increased by 8% to $4 billion 100 million, gross profit increased 10% to 1 billion 630 million US dollars, achieving a continuous 7 quarter sales growth.

In the main brands, Banana Republic and Old Navy gained 2% and 5% of the same store sales respectively, while Gap recorded a 5% decline, becoming the only brand that recorded the same store sales decline.

It is worth noting that Gap's same store sales expanded further this year (down 1% last year), which has become the biggest burden of group performance.

At present, the share of Old Navy sales has increased from 46% last year to 49%, while Gap has dropped from 32% to 30%. Obviously, the trend of Old Navy replacing Gap becomes the main engine of group growth is inevitable.

It is reported that the future strategy of Gap will focus on Asia and digital pformation, and will increase online sales. It is estimated that this year's electricity sales volume is expected to reach US $3 billion 500 million.

Recently, Muji's parent company "good quality plan" released its second quarter financial report in fiscal 2019.

In the two quarter of August 31st, the sale of Muji China's same store sales fell for the first time, a decrease of 2.2% compared with sales.

In the first half of fiscal year March 1st to August 31st, the decline in sales in the two quarter dragged down a comparable decline in the brand China market revenue of 0.2%.

Since July 2015, Muji has been cut 9 times in the Chinese market. During the period, the sales performance of the Chinese market has been on the rebound for several times, especially in the 2017 to 2018 fiscal year, but the overall trend is still declining.

Even so, Muji did not plan to give up. It plans to increase the number of stores in the Chinese market to 264 at the end of the fiscal year, and to open 35 new stores in the second half.

According to Hong Kong media sources, Beijing cotton field prosecution of Japanese Muji infringement case won.

This means that the products sold by Japanese Muji will be labeled "MUJI" only in the future.

In October 26th, 18\19 announced its first quarter results.

In the 3 months ended September 30th, the total income of the group was HK $3 billion 334 million, which was 16.2% lower in local currency terms.

During the period, retail sales accounted for 37% of the group's revenue, and the annual decrease of 17.8% in local currency was mainly related to the continued distribution of territory (such as withdrawal from Australia).

), the continuous decline in customer traffic at the shops, the warmer summer temperatures in Europe, and the fall in commodity sales in autumn.

The sale of comparable retail outlets in the Asia Pacific region is 0.3% per annualized in local currency, thanks mainly to the successful promotion in the region.

In addition, the electronic store revenue decreased by 14.9% in local currency year by year, while European electronic store revenue decreased by 14.1% in local currency.

In October 24th, I.T released its first half financial year performance report.

In the 6 months ended August 31, 2018, the group's turnover increased by 11.3% to HK $4 billion 64 million, gross profit margin was 64%, net profit increased to 87.8%, up to HK $113 million.

During the period, the retail sales of I.T in China's Hongkong and Macao increased 7.7% to HK $1 billion 580 million, the same store sales growth rate was 8%, the mainland's retail revenue increased by 12% to HK $1 billion 832 million, and the same store sales fell 2.5%.

In addition, I.T's total retail sales in Japan and the United States rose 25.8% to HK $574 million compared to the same period last year, mainly due to the hot selling of A Bathing Ape brand series and the new store opened by I.T in Losangeles, USA earlier this year.

At present, self created brands are the main source of income for I.T. Sales in the first half of fiscal year increased 12.1% to HK $2 billion 315 million, accounting for 58.3% of total revenue, while international brand sales increased 10.2% to HK $1 billion 626 million, accounting for 41.4% of total revenue.