Channel Upgrades Helped Smith Barney'S Apparel Revenue Exceed 1 Billion 700 Million In The First Quarter, With Net Profit Or Over 4 Hundred Million This Year.

The local casual wear giant Metersbonwe apparel Limited by Share Ltd (hereinafter referred to as "Mei Bang dress") disclosed a quarterly report in April 29th. During the reporting period, the company achieved operating income of 1 billion 727 million yuan, down 20.68% compared to the same period last year. The net profit attributable to shareholders of listed companies was 38 million 348 thousand yuan, an increase of 23.92% over the same period last year. The net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 36 million 698 thousand and 900 yuan, down 22.68% compared to the same period last year. The basic earnings per share were 0.02 yuan.

By the end of the end of the reporting period, the total assets of Smith Barney clothing reached 7 billion 138 million yuan, down 0.98% from the same period last year, and the net assets attributable to shareholders of listed companies were 2 billion 915 million yuan, up 1.33% over the same period last year.

Mei Bang apparel said that with the strategic adjustment of the company's channel upgrading, the expansion effect of franchising channels showed that the number of franchising revenue increased two digits in the first quarter of 2019. At the same time, the company intensified its efforts to optimize the direct channel, closed down direct and inefficient stores, and affected short-term performance.

Based on caution, the company expects a slight loss of about $50 million in 2019 1-6.

And for the reporting period, the company's main financial data and financial indicators changes and reasons,

(1) consolidated balance sheet items

1, the balance of Monetary Fund increased by 41% compared with the beginning of the period, mainly due to the decrease in capital expenditure during the current period.

2, the balance of the accounts receivable decreased by 76% compared with the beginning of the period, mainly due to the decrease in the balance of the advance customers' receipts.

3, the balance of tax payable decreased by 35% compared with the beginning of the period, mainly due to the decrease in value added tax during the current period.

4, the balance of other comprehensive income decreased by 59% compared with the beginning of the period, mainly due to the decrease in other comprehensive income share attributable to the joint venture, Huarui bank.

(two) consolidated profit statement items

1, the financial cost increased by 44% over the same period last year, mainly due to the increase in interest payments on financing loans in the current period compared with the same period last year.

2, asset impairment losses decreased by 39% compared with the same period last year, mainly due to the decrease in inventory losses in the current period compared with the same period last year.

3, asset disposal income decreased by 561% compared with the same period last year, mainly due to the increase in asset disposal losses during the current period.

4, other revenue increased by 1564% over the same period last year, mainly due to the increase in government subsidies received during the current period compared with the same period last year.

5, operating expenses increased by 188% over the same period last year, mainly due to increased losses in the current period compared with the same period last year.

6, the income tax expense increased by 158% over the same period last year, mainly due to the decrease in deferred tax assets during the current period.

(three) consolidated cash flow statement items

1, net cash flows from operating activities increased by 4% over the same period last year, mainly due to a decrease in operating expenses over the same period last year.

2, net cash flows from investment activities increased by 41% over the same period last year, mainly due to the decrease in investment in decoration and pformation during the current period compared with the same period last year.

3, net cash flow from financing activities decreased by 143% compared with the same period last year, mainly due to the increase in the repayment of loans during the current period compared with the same period last year.

According to the financial report, in 2018, the United States apparel business income reached 7 billion 677 million yuan, an increase of 18.62% over the same period last year. Net profit attributable to shareholders of listed companies was 40 million 361 thousand and 600 yuan, an increase of 113.24% over the same period last year. The realization of earnings per share was 0.02 yuan / share, an increase of 116.67% over the same period last year.

By the end of the reporting period, the company's total assets amounted to 7 billion 209 million yuan, an increase of 8.97% compared with the beginning of the year, and the owner's equity attributable to shareholders of listed companies 2 billion 878 million.

Reporters learned here that since 2018, the United States and costumes have upgraded their competitiveness in the five major brand products to promote continuous improvement in business quality.

During the reporting period, the brand and product pformation and upgrading of Smith Barney clothing made the multi fashion brand style widely accepted by more consumers.

At the same time, American Apparel further perfected the company's ability to provide cost-effective products experience for all brand target consumers, so as to enhance brand recognition and loyalty.

With the improvement of brand competitiveness, the sales revenue of comparable outlets increased by about 7% over the reporting period.

During the reporting period, the Metersbonwe brand revenue performance of Mei Bang clothing brand continued to improve, and sales revenue increased by 13% year-on-year; ME&CITY brand continued to maintain rapid growth in store area and sales scale, and sales revenue increased by 48% in 2018; MoomooME&CITYKIDS two children's wear brand annual sales revenue increased 24% year-on-year.

In view of the channel upgrading strategy, the State Management Department of apparel said that the United States clothing industry has developed a channel strategy based on the shopping center + traditional business circle, deepening the comprehensive strategic cooperation with the famous shopping centers across the country, and promoting the development opportunities of the huge business opportunities and multi-level market by consuming, integrating the social resources, and joining the cooperation to create a win-win situation.

Based on the benchmarking shops built on the first and second tier markets, the three or four line market will join the cooperative development as the goal and promote the diversification of the channel structure.

During the reporting period, the revenue from franchise sales increased by 33% over the same period.

What is noteworthy is that American Apparel is committed to promoting retail standardization.

In the announcement, the United States said that the company has standardized the successful cases. From the two dimensions of the standardization of the brand attitude and the standardization of the best profit mode, the company will conduct an efficient and fast replication in the direct and franchising channels, so that the business scale and efficiency can be improved simultaneously.

Lv Ming, an analyst at Tianfeng securities, said that since 2018, the United States has continued to improve its management efficiency through brand and product upgrading, channel upgrading and retail upgrading.

In terms of brand and product upgrading, the United States and the United States to achieve Metersbonwe brand upgrade fission, the overall trend towards stylization and quality, the company launched five series: NEWear, HYSTYL, N vachic, MTEE and ASELF to meet the needs of different consumers.

In terms of channel upgrading, Mei Bang clothing insists on the channel strategy of shopping center + traditional business circle in parallel development, and continues to deepen the comprehensive strategic cooperation with the famous shopping centers in the country. Based on the benchmarking shops in the first and second tier markets, it promotes the three or four line market cooperation development as the goal, and promotes the diversification of the channel structure.

In 2018, sales revenue increased by 33% over the same period last year.

In terms of retail upgrading, the United States and costumes promote the standardization of retail capabilities. From the two dimensions of standardization of brand attitude and standardization of best profit mode, we can efficiently and quickly replicate direct and franchising channels.

With the turning point of American barrack clothing business in 2018, especially the sharp improvement of current gold deposits, LM Ming expects that in 2019, the United States will usher in a net profit inflection point, mainly because:

1, the cost of direct store stores is high. It is estimated that in 2019, the United States and the state will expand the cost of the store, which will reduce the cost rate. According to the results of the report, the cost of long term deferred expenses in 2018 will reach 282 million.

In the 2018 annual report, the rise of the company's brand and product image has attracted more quality franchisees to join the company. In 2018, the distribution revenue increased by 33% over the same period last year.

It is estimated that in 2019, the new store will focus on franchisees, which will reduce the cost rate.

In addition, the annual report disclosed that Shanghai and Shenyang, the United States and other subsidiary companies have suffered losses. It is expected that in 2019, the United States will continue to adjust the loss of clothing stores, reduce losses.

2, asset impairment is expected to decline significantly in 2019: 2018, the loss of assets of American bond apparel was 313 million, 140 million lower than that in 2017.

Among them, the loss of inventory depreciation in 2018 was 230 million, a decrease of 140 million compared with 2017.

It is judged that the impairment of assets has reached a peak in 2018 and the absolute amount of stock has declined. The loss of asset impairment is expected to continue to decline in 2019.

3, management efficiency improvement: in 2018, the management cost rate and sales cost rate have declined. It is expected that with the continuous improvement of the internal management of the state garments, the three fee rate is expected to further decline.

Lv Ming predicted that the United States Bona dresses 2019 is expected to become the first year of net profit inflection point, net profit is expected to reach about 450 million, net interest rate is expected to rise to 5%; since then, with the release of American bond dress reform dividend, net interest rate is expected to return to 10% in about 2-3 years, Lv Ming said frankly, the United States clothing decoration through brand, product, channel and retail comprehensive upgrading, performance gradually restored.

In recent years, it has also been found that some of the domestic brands that had once been brilliant and then fell into the trough have gradually recovered their performance through their own reform and upgrading of brands and products, and have been clearly reflected in the stock price level, such as Lining and Bosideng.

At present, the stage of Smith Barney clothing is similar to that of Lining and Bosteng in the period of recovery and recovery. With the performance of American state clothing or the upward turning point, it will eventually be reflected in the stock price level.

In 2019, the company will continue to follow the path of brand upgrading, product upgrading, channel upgrading and retail upgrading, and strive to meet the rising consumer demand with better fashion products and shopping experience, and further strengthen cooperation with multiple business partners to further implement the channel development strategy of shopping centers plus traditional business circles, and further optimize the terminal store structure.