Share Prices Fell For Five Consecutive Days. What Happened In The Fashion?

China Commercial Daily reporter noted that as of November 20th, the high-end fashion brand of women's wear has fallen for five consecutive days. After opening today, the company's share price is still falling. Prior to this, the announcement of abnormal fluctuations in stock trading has been announced by the daily fashion. It has been found that the company is operating normally and has no major fluctuations in stock prices. What exactly happened in the fashion?

It is reported that there are five brands of "broadcast broadcast", "PERSONAL POINT", "CRZ", "MUCHELL" and "broadcute" under the fashion of fashion day. Among them, broadcast broadcast is the main brand, pushing personalized design, positioning high-end women's clothing. In May 31, 2017, the daily fashion was officially listed on the Shanghai Stock Exchange A shares.

According to the China Commercial Daily reporter, the overall trend of share price declines is obvious this year, and this year reached a record low in August. The reporter sent an interview invitation to the Japanese fashion on related issues such as falling stock prices, but no reply has yet been received as of press release. China clothing association related experts told reporters that the company's share price fell day by day may be related to the "double 11" clothing performance and company performance.

During this year's "double 11" period, the major clothing brands were actively involved in the "promotional war" and launched multiple promotions. However, the participation of broadcast was significantly lower than that of other women's clothing brands. At the same time, such as UNIQLO, Semir, Taiping bird, Eve and other clothing brands like the "double 11" transcript, broadcast broadcast did not appear in the list of clothing brands of 45 sales of billions of dollars. The experts said that "double 11" has become an important node of the major clothing brand marketing. Broadcast broadcasting, as the main brand of the day fashion, is lagging far behind other women's clothing brands in terms of marketing efforts or sales volume. The company's operation ability is relatively weak.

At the same time, the experts also told the China Commercial Daily reporter that since the beginning of last year, the trend of net profit growth has been weakening. The third quarter results show that the company's operating income is 791 million yuan, down 0.22% compared to the same period last year. Net loss is 775 thousand and 300 yuan, compared with the same period last year, the net profit was 20 million 901 thousand and 100 yuan. It is worth mentioning that the loss in the first half of this year was 16 million 274 thousand and 700 yuan, down 190.78% compared with the same period last year.

China business daily noted that compared with the initial stage of listing in 2017, a number of recent securities analysis reports are cautious about the development of the daily fashion. Everbright Securities analyst Li Jie believes that the current performance of the day fashion is relatively weak, gross margin decline dragged down the performance.

In fact, in the early days of the listing, the daily fashion offered an expansion plan, and planned to build 209 new outlets in three years. In 2017, the number of daily fashion shops increased by 103, and the number of shops increased by 78 last year. However, the daily fashion has not yet seen the sweetness of store expansion, but is in the dilemma of increasing profits without increasing profits. Since then, the daily fashion has started large-scale business to adjust the business situation. In 2017, the company opened 251 new stores and closed 148 stores. Last year, the company opened 273 new stores and closed 195 stores. This year, the company has 84 outlets. In response, the experts said that the daily fashion will increase a lot of operating costs in opening stores and closing stores, and profits will also decline.

At the same time, the day to fashion fashion for the development of multi brand matrix, launched last year, MUCHELL, broadcute two brands. Li Jie said that due to the short operation time, the new brand store has not yet produced scale effect, and will greatly increase the operating cost of the company. Coupled with the daily fashion, in order to continue to discount the sale of inventory, will further lead to a decline in gross margins.

Although there is no clear explanation for why the share price of the fashion sprint will continue to fall, it is an indisputable fact that the company's performance growth is weak or even a loss. The Chinese press will continue to pay attention to the future of the day and fashion.