Daily Fashion 2018 Net Profit Minus 4150-5400 Yuan, Down 50%-65%

Daily fashion (603196) recently released the 2018 earnings preannouncement notice. The company expects net profit attributable to shareholders of Listed Companies in 2018 will be reduced from 41 million 500 thousand yuan to 54 million yuan compared with the same period last year (statutory disclosure data), a decrease of 50% to 65% over the same period last year.

According to the notice, the net profit from non recurring gains and losses attributable to shareholders of listed companies between January 1, 2018 and December 31, 2018 will be reduced from 45 million yuan to 56 million yuan compared with the same period last year (statutory disclosure data), a decrease of 60% to 75% over the same period last year.

It is understood that the main business impact: the company continued to increase investment channels in 2018, the annual operating income grew by about 6%, of which the core brand "broadcast broadcast" business revenue grew by about 7%, maintaining a stable trend.

The company has 117 new outlets in 2018, and the new shops need a period of training. Stores, such as shopping malls, decoration and wages, all need to be paid as usual, resulting in an increase in the company's sales expenses, representing an increase of about 22.5% compared with the same period last year.

In 2018, the company increased its R & D investment in clothing and fabrics, reformed the company's quality control center and R & D center, and purchased new equipment. At the same time, it also increased the corresponding staff training and salaries for the accumulation of relevant R & D professionals.

In 2018, the company launched the two brand new brands of women's clothing brand MUCHELL and children's wear broadcute to the market.

The introduction of new brand requires the process of cognition from the market and consumers. The investment in early market promotion, the R & D investment and the input in channel development are relatively large, and the output benefit will take some time.

In 2018, under the influence of macroeconomic environment, the prosperity of clothing industry was under pressure. The overall performance of the company's sales terminal market was not as good as expected. At the same time, the inventory of the company increased, and the company's inventory price fell accordingly.

The impact of non operating profit and loss: the impact of non recurring gains and losses on net profit increased by about 4 million 680 thousand yuan over the same period, mainly due to the government subsidy of 10 million 430 thousand yuan in the current period, an increase of 3 million 180 thousand yuan over the same period last year, and the realization of the entrusted financial income of 7 million 650 thousand yuan, an increase of 1 million 170 thousand yuan over the same period last year.

Statistics show that the main business of the day style fashion is creative design, technology development and production sales of boutique garments, focusing on high-end fashion women's clothing.