Net Profit Decreased By More Than 30% In The First Half Of The Year And The Flying Bird Could Still Fly High.

Recently, the women's clothing brand Taiping bird released the first half of this year's performance report. The report shows that the company's operating income and net profit have dropped sharply, of which net profit has dropped by 30%. The reason is that a number of securities analysis shows that Taiping bird increased the channel adjustment in the first half of this year, resulting in a substantial increase in sales expenses, and the decline in profits is an inevitable trend.

Specifically, in the first half of this year, Taiping bird achieved a business income of 3 billion 120 million yuan, a decrease of 1.54% compared with the same period last year, and a net profit of 132 million yuan attributable to shareholders of listed companies, a decrease of 33.06% compared with the same period last year, and a net profit of 24 million 530 thousand yuan, a decrease of 66.87% compared with the same period last year. Compared to last year's business revenue growth of 7.78% and net profit growth of 27.51%, Taiping bird's development in the first half of this year can be said to be relatively slow. However, Taiping bird said that compared with the company's first quarter operating conditions, the second quarter has effectively improved the performance decline by controlling costs and retail operations.

From the perspective of sales growth, Taiping bird clothing, men's wear and children's wear sales have declined, respectively, down 2.58%, 4.81% and 3.65% respectively. Four of the four major brands have achieved positive growth in operating income, with a total revenue of 418 million yuan, up 12.39% over the same period last year. However, the brand has little impact on the overall performance of the company.

China Commercial Daily reporter noted that many securities companies attributed the decline of Taiping bird's performance to the company's channel adjustment. It is reported that Taiping bird is gradually adjusting the number of Direct stores and franchisees. The data show that in the first half of the year, there were 73 direct outlets in the company, 232 in the same period, and 167 in the whole brand. At the same time, the revenue of offline outlets increased by 4.32%, and that of franchised stores decreased by 20.93%.

The adjustment of stores resulted in a significant increase in the cost of Pacific bird. Shi Hongmei, an analyst at Orient Securities, said that Taiping bird outlets had led to higher rental costs and increased advertising costs. Sales cost increased by 5.02%. Despite the improvement in Taiping's second quarter business performance, there was still a big growth pressure.

It is worth mentioning that in recent years, outlets have been booming, and Taiping bird has seen business opportunities. Last year, it first proposed the development of outlets. In January of this year, Taiping bird and Shanghai Bailian Group jointly built up outlets and stores. Since then, in April, Taiping bird worked with Shanshan Group to expand outlets outlets.

China Clothing Association experts told reporters that inventory problem has always been one of the problems to be solved by Taiping bird. The current layout of the company is conducive to the timely handling of inventory. As of the first half of this year, Taiping bird inventory was 1 billion 694 million yuan, compared with 1 billion 836 million yuan a year ago.

Shi Hongmei believes that there is still much room for improvement in terms of cost management and inventory control, which is also an important way for Taiping to improve its profitability in the future. It is reported that since last year, Taiping bird has introduced the TOC mode (that is, the enterprise formulating production plan according to the sales situation) from the men's brand to the whole brand, and the mode of "selling the product" is conducive to helping the Taiping bird to improve its operational efficiency. Shi Hongmei said that from the current situation, the ability of Taiping bird's supply chain management and terminal reaction efficiency have been improved, which is conducive to strengthening the brand's comprehensive competitiveness in every subdivision area.

However, it is worth noting that although many securities companies still maintain "overweight" rating on Taiping birds, most of them have lowered their expectations for the performance of Taiping bird.