Are Young People'S Clothes Not Ready To Sell? Taiping Bird'S Net Profit Fell By Only 5.5 Billion In 2019.

Ningbo Taiping bird fashion Limited by Share Ltd (hereinafter referred to as "Taiping bird") released the 2019 annual performance notice in the evening of January 9th (January 9th). After preliminary calculation by the financial department, it is estimated that the net profit attributable to shareholders of Listed Companies in the year 2019 will be around 550 million yuan, which is expected to decrease by about 4% compared with the same period of last year. It is estimated that the net profit after deducting non recurring gains and losses attributable to shareholders of Listed Companies in the 2019 year is about 350 million yuan, which is expected to reduce about 11% compared with the same period last year.

Taiping bird said that the main reasons for the change in the company's performance during the reporting period were:

(1) the total retail sales and operating revenue of the company continued to grow, but the growth rate slowed down compared with the previous year. The company continued to optimize the layout of the channel this year. The number of stores at the end of the year was around 4500, of which more than 1600 were direct stores, the number increased from the beginning of the year, and the lease increased accordingly. At the same time, the company increased its key investment in brand building, resulting in a decrease in the current operating profit.

(two) the company optimizes the liquidation of some of the long-term losses of its subsidiaries this year, and the enterprise income tax that has not been recognized in the previous year is recognized in the current period, and the non recurring gains and losses have increased.

At present, Taiping bird constantly optimizes the new four-wheel drive channel layout, adjusts street stores, focuses on developing shopping center stores, attaches importance to ole channel, and vigorously develops e-commerce channels. By the end of the three quarter of 19, the total number of offline stores was 4438, of which 1625, 2807 and 6 were directly engaged, franchised, and affiliated. The number of new stores increased by 109, 255 and -10 at the end of 2018.

Guotai Junan analyst Hao Shuai believes that along with the development trend of Taiping bird's direct business development, some of the franchised stores are in the stage of elimination and adjustment, and revenue and gross profit margins have declined. With the end of the optimization adjustment, the profitability of franchise channels is expected to pick up. Taiping bird focuses on improving the profitability of its stores and improving the quality of its operations, increasing the proportion of direct outlets. By the end of the three quarter of 2019, 109 outlets were directly opened, 255 stores were closed, and single store profits increased.

According to the insiders, sales of fashion apparel companies including Taiping bird are also facing challenges under the influence of the overall retail environment. There is a pressure on short-term business.

Wang Feng, a researcher at Huajin securities, believes that during the period of economic slowdown, consumers are cutting down on the consumption of textile and clothing, leaving the budget to the trend of consumer necessities and consumption upgrading. Since 2019, the prosperity of textile and garment industry has continued downward. In the three quarter, the prosperity index of textile and garment enterprises has been significantly lower than the beginning of 2019. The growth of clothing consumption next year and 2020 will be around 3%~4% next year.

Affected by the consumer environment, Euromonitor expects sales growth in clothing market in 2019 and 2020 to remain at around 3%~4%, slower than the growth rate of nearly 8% in 2018. The macroeconomic environment has affected consumer confidence and the growth of clothing consumption has slowed down.

In Wang Feng's view, since 2019, the big brands that have already made profits have increased and differentiated, and basically maintained a growth trend. Especially in the first three quarters of 2019, the main brand operating income of the typical company was divided, but basically maintained a similar growth rate in 2018. Already profitable big brands already have strong brand awareness and market competitiveness, and still have a good performance in the context of slower industry growth. The growth rate of small brands that have not yet made profits has slowed down. As the market competition intensifies, the flow pattern is no longer conducive to the cultivation of small brands. The unprofitable vice cards or small brands have been greatly affected, and some small brands have been reduced or reduced. Since 2018, the growth rate of some small brands has declined significantly. As a result, the industry needs to pay attention to the clothing companies' winter stock and the process of gathering the brand to the faucet.

According to public information, the Taiping bird group was founded in 1989. The "Taiping bird" brand was founded in 1995. After 20 years of development, Taiping bird group has developed from a single garment enterprise to a comprehensive industry group with clothing brand's creative research and development, fashion design and marketing as the core of the industry.

According to the financial report, in 2018, Taiping bird firmly pushed forward the three major development strategies facing the future in terms of digitalization, experiential and supply chain, achieving a better growth in comparable store profits, a substantial loss reduction in loss shops, and a new store opening effect. The company achieved revenue of 7 billion 710 million yuan in 2018, an increase of 7.8% over the same period last year, and a net profit of 570 million yuan, an increase of 27.5% over the same period last year.