Entering The 2 Billion 100 Million Revenue Club'S Fashionable Fashion, The Net Profit In 2018 Is As High As 574 Million Yuan!

The famous local fashion brand, Limited by Share Ltd, was released in April 13th. In 2018, the company achieved a total revenue of 2 billion 100 million yuan, an increase of 7.9% over the same period last year. The net profit attributable to the owners of the parent company was 574 million yuan, an increase of 19.6% compared with the same period last year, and the earnings per share were 1.55 yuan.

As for the change of operating income, di Su fashion explained that the market size and channel grew steadily. In 2018, the total number of stores increased by 24 compared with the same period last year. The growth of e-commerce channel revenue was faster, representing an increase of about 30% over the same period last year.

During the reporting period, asset impairment losses fell by 133.1% over the same period last year, boosting growth. In addition, non recurring gains and losses have a greater impact on company performance, totaling 100 million yuan, of which the government subsidy is 48 million 983 thousand yuan. After deducting the non recurring gains and losses, the net profit of the returned parent was 470 million yuan, down 5.1% compared to the same period. Net profit growth is less than that of revenue growth. The gross profit margin was mainly reduced from 74.84% last year to 73.9% this year and the rate of expenditure increased by 3.4 percentage points over the previous year.

The company's 2018 profit distribution plan: 10 yuan 10 yuan (including tax).

From the point of view of the channel, it has made efforts to promote retail sales, and has made professional training with retail training professional institutions to provide professional training for direct sales guidance. The proportion of the sales commission has been increased. The VIP management team has been established, and the VIP user experience has been achieved through the promotion of all brand members. The number of members has increased from about 100000 at the end of 2017 to 400 thousand, contributing to about 60% of retail sales. The effectiveness of the above measures was gradually reflected in the fourth quarter of 2018. The company's revenue growth in the fourth quarter of 2018 was 13.6%, of which direct channel performance, especially the growth of retail sales, was directly reflected in the growth of the retail outlets from the first half of 2018 to 10% in 2018.

On line, the benefit line has increased the proportion of new products sold on the same line, and the revenue increased by 31% in 2018, while the gross profit margin increased significantly. In 2018, the income of Di Su fashion online increased by 31% to 256 million yuan compared to 2017, accounting for 12% of the total sales revenue, and gross margin was higher than 2.8pp of 73.6% in 2017, which was mainly related to a significant increase in the proportion of online new product sales (from 30% to 40%).

Sub brands:

1) the main brand DAZZLE:2018 accounted for 59% of the vogue fashion revenue in the year of DAZZLE:2018, and the performance of the beneficiary direct business was strong, and its revenue growth in the fourth quarter of the year was still 9.5% in the second half of 2018.

2) young brand D "zzit:2018" occupies 33% of the fashionable business income, benefiting from the main brand. The channel performance is strong, the revenue grew 14% in the four quarter, and the gross profit margin also increased slightly. In 2019, the company will pay more attention to d 'zzit, which will not only usher in new overseas brand designers, but will also get more resources in brand promotion and channel expansion, and make appropriate extensions in the price belt to play its growth potential.

3) high-end brand DIAMONDDAZZLE: as a high-end brand line that emphasizes manual and advanced sense, it uses a lot of innovative fabrics and processes, but its volume is small, but its growth has always been very stable. In 2018, its revenue increased by 15% to 170 million yuan.

4) men's clothing is listed at the end of RAZZLE:2017, and has 13 stores / 9 million 210 thousand sales revenue in 2018. By the end of 2018, the original DIOR brand designer was introduced into the design and research work, and the original HUGOBOSS marketing executive was responsible for the marketing work. In 2019, the development will be on the right track.

According to Mario Li, an analyst at Soochow securities, in terms of the profit statement, in 2018, the sales revenue of 0.9pp increased by 7.9% to 2 billion 100 million yuan, and the gross profit margin dropped slightly by 0.9pp compared with the same period last year. The cost rate also increased during the period (mainly from the renovation cost and sales staff salary increase, and the listing fees). But after the benefit of Anke's housing dispute settlement, the net profit growth of the loss of asset impairment was still as high as 19.6% of the parent company. The recognition of superimposing government subsidies resulted in a significant increase in operating income.

From the turnover situation, accounts receivable and inventory control are excellent, and the proportion of the continuous increase in the proportion of direct investment has not changed significantly in the fourth quarter of 2018 compared with the same period last year. The side shows the excellent sale of the terminal, and the operating cash flow is healthy, up 4.2% in 2018, which is consistent with the business situation.

In Marie's view, as a product innovation unique, mature brand operation, and full growth of high-end women's clothing group continue to recommend, it is expected that in 2019 fashion continues to enhance single store revenue, while the number of stores is expected to increase by 10%, of which 20-30 are direct, and 60-70 are joined. The net profit of 2019, 2020, and 2021 attributable to the parent company increased by 15%, 12%, 11% to 660 million yuan, 7.4, 820 million yuan, respectively.

Public information shows that in 2002, "Di Su fashion" was founded in Shanghai, China. It is a multi brand fashion group. Since its inception, the company has focused on the positioning of high-end brands, creating four famous clothing brands: "DAZZLE", "DIAMONDDAZZLE", "d" zzit "and" RAZZLE ", forming a multi-dimensional and deep-seated penetration into the fashion industry. Through strong design and research, abundant product mix, agile supply chain management, strategic marketing network layout, accurate brand positioning, all-round brand promotion and high-quality customer group cultivation, the company has established a good brand image in China's fashion industry.

By strategically developing high quality dealers and filling up the market area that the direct terminal has not yet reached, it has initially formed a national marketing network of "a second line city as the core and three or four lines of cities". By December 31, 2018, the company has 1062 retail outlets throughout the country, of which 378 are direct terminals and 684 distribution terminals.

As of December 31, 2018, the design and R & D center of the company had 189 members. The company's costume designer has many years of experience in the Chinese fashion design industry. The company's design and research team has rich experience in fashion design while maintaining high stability.

In 2019, di Su fashion plan did the following work:

1, the original brand endogenous growth, category extension

The brand DAZZLE enjoys a certain popularity and market share in the high-end women's clothing. Next, the company will continue to increase its market share, single store revenue and customer parts as the core assessment index, and strengthen the management of members. At the same time, it should consider the extension of category design and enhance the brand additional value. D zzit, as the brand targeted mainly at young consumer groups, will take the expansion of market share and single shop revenue as the core goal. The high-end brand DIMONDDAZZLE will continue to maintain light luxury and focus on quality. The RAZZLE of men's wear brand will be officially launched in September 2017, and is still in its incubation stage. By the end of 2018, the original international famous brand designer joined the company to take full responsibility for the design and research of men's clothing. The next step in the design style and the adjustment of marketing channels will be the main task goal. The company's existing brand, the main

2. Look for the target of merger and acquisition in line with the company's strategic objectives.

As a strategic goal of becoming an internationally competitive fashion group, the company will actively seek the targets of M & A in line with the company's strategic objectives on the basis of the ongoing investment of the existing brands, constantly expand the company's territory, enrich the brand matrix, and enhance the synergy effect.

3, increase investment in product R & D design.

The company attaches great importance to the development of R & D team, will continue to increase investment in personnel training, incentive mode and other aspects, attracting talents to join, including introducing internationally renowned designers, bringing advanced design concepts, diversified and common development, and making the company's brands develop independently. The company also encourages designers to learn more about communication, learn experience, enrich their horizons, and increase design inspiration.

4, optimize the layout of the channel

The company will pay more attention to the quality improvement of terminal stores rather than the number of shops in the future. It will close some shops with poor performance and improve the overall quality of the shops. It will also help the company win more brand positioning in the competitive core business circle. Through channel layout optimization, we can better reflect the positioning and style of the company's brand, enhance the brand image, and give consumers a better shopping experience.

5, innovation brand dissemination, promotion and marketing mode.

The company will make use of the Internet tools, combined with the popular way of dissemination and promotion, to conduct systematic analysis of sales data, and to make consumers interact with brands more effectively in view of the changing consumer behavior and ways of consumers, so as to provide consumers with a consumer experience beyond expectations and implement precision marketing.

6, strengthen information technology and introduce high technology.

The company will continue to invest in information technology, cover more business areas and processes, improve operational efficiency, and will also apply more high-tech to practical business, including Internet of things and 3D fitting glasses.

During the reporting period, the fashion of Di Su focuses on the following aspects:

1, optimize marketing network system.

To further optimize the marketing network system, improve customer experience, enhance the company's ability to control high-quality shops in key cities, enhance the breadth and depth of marketing coverage, and close some of the poorer shops to further enhance brand image and influence. At the beginning of 2018, the whole channel project was formally launched, which opened up online and offline, and realized inventory sharing, which accelerated the turnover of inventory. For e-commerce channels also increased investment, more new products on the Internet sales, the company's Micro mall has also been formally launched. As of December 31, 2018, the company had 1062 retail outlets.

2, increase brand promotion efforts.

To promote brand promotion through various channels such as fashion magazines, outdoor media and Internet media, the fashion industry includes deep cooperation with celebrities and opinion leaders, advertising on the cinema line, various online and offline promotion activities, etc., disseminate brand culture and enhance brand influence. The company held an ingenious D zzit2018 autumn winter fashion conference at the end of 5 in 2018.

3, information spanformation and upgrading

In order to better manage the business, the company focuses on the SAP solution to improve and optimize all aspects of the company's business. Especially in the supply chain management and marketing side, the information system is spanformed, so that the company can accurately and timely obtain information from various business departments and various business sectors, and carry out scientific and effective management decisions, including warehouse WMS location management system, full channel sales system and so on.

4, logistics base construction

With the gradual expansion of the scale of the company, the current logistics warehouse has been affected by various aspects, and has gradually failed to meet the needs of the company's business growth. So at the end of 2017, the company began to build a new logistics base in Kunshan, Jiangsu, and imported advanced hardware and software facilities to meet the needs of the company's logistics and warehousing in the next 5-10 years. The first phase of the new logistics base was put into operation in mid March 2019.

5. Investment in design and research and development

To promote the development of design and research team, we should strengthen the development of products, ensure that products can be in line with the fashion trend and reflect the brand spirit and cultural connotations of the company. By the end of 2017, the men's clothing brand RAZZLE was officially launched. At the end of 2018, the leading designer of the famous international brand also joined the company in charge of the research and development of menswear brand.

6, personnel training and development

High quality management talents, managerial talents and technical personnel are the foundation for realizing the strategic development goals of the company. Through the establishment of a multi-channel talent introduction mechanism, the improvement of staff's self promotion mechanism, and the effective staff promotion and development mechanism and training system, the company further improves the company's human resources system to meet the company's leaping development needs for human resources.

According to the financial report, the final inventory of Di Su fashion was 257 million yuan, compared with 254 million yuan in the same period last year, which increased by 2 million 953 thousand and 500 yuan from the same period last year, an increase of 1.16%. The inventory turnover rate was 2.14 times / year, an increase of 0.5 times / year over the 1.64 times / year in the same period last year.