Net Profit Plummeted 2114.61%, What'S Wrong With American Apparel?

Recently, the 2019 annual report of Smith Barney apparel has slumped. It seems that the United States is constantly trying to transform the dress, to face many tests.

Smith Barney's 2019 net profit plunged 2114.61%

During the reporting period of 2019, the company achieved a total revenue of 5 billion 482 million yuan, a decrease of 28.59% compared with the same period last year, a loss of 778 million of operating profit, a 1521.48% decrease compared with the same period last year, and a net profit loss attributable to shareholders of listed companies was 813 million yuan, down 2114.61% from the same period last year.

Mei Bang clothing explained that the main reason for the decline in performance during the reporting period is due to several factors: first, the delay in the listing of new products in spring and summer can not meet the market demand; the two is to increase the cash intensity in the major marketing activities such as "double eleven" and "double 12", resulting in a sharp decline in gross margin of sales, and three is the company's mention. The total provision for impairment of assets is 464 million yuan, of which accounts receivable is reduced by 104 million yuan, and inventory depreciation is reduced by 221 million yuan, and the long-term deferred expenses is reduced by 83 million 110 thousand yuan.

In addition, the United States also released its 2020 results announcement. It is expected that net profit in the first quarter will be 150 million yuan -2.5 billion yuan, a profit of 38 million 348 thousand yuan in the same period last year, down 491%-752% compared to the same period last year.

Mei Bang pointed out that the outbreak of a new coronavirus in the first quarter, the company actively cooperate with the relevant government regulations, most shops took the suspension of business, restrictions on the flow of people and other measures, the company's sales revenue has a greater negative impact; the company further accelerated retail sales, the first quarter of online sales revenue slightly increased compared with the same period last year, of which 2, March online orders increased by 30 More than%.

We looked at the latest US bond market value: 6 billion 80 million yuan.

　　 What did the United States experience?

Founded in 1995, it was listed in Shenzhen Stock Exchange in 2008 and became the first market of garment market value.

In the early ten years of the twenty-first Century, it was the golden age of Metersbonwe expansion. The portrait of spokesperson Jay Chou and the slogan of "not taking the unusual road" were once overwhelming.

The 2008-2012 year is the peak of the United States, and Metersbonwe has 5220 stores nationwide. In the streets of China's two or three tier cities, the LOGO and stores and billboards of the "international brand" are everywhere.

Turning point in 2015, the United States has seen a loss of 430 million yuan. From the earnings figures, net profit continues to slide, and the outward appearance is the continuous withdrawal of the stores under the American state line.

Zhou Chengjian said: "there is no concentration on the industry, so we really use the craftsman spirit to make a tailor, so the market is abandoned." Only the marketing is valued highly, the expenditure is 50%, the design is 40%, and the production is only 10%.

In November 21, 2016, Zhou Chengjian inherited her father's career and resigned.

After more than two years of hard work, it finally achieved results. In 2018, the state owned company's operating income was 766 million 473 thousand yuan, and it turned into a profit. But the performance in 2019 is not beautiful.

　　 Change into running

In recent years, the United States has also done many new moves.

Multi brand layout. In July 2017, Smith Barney changed its main Metersbonwe brand from a single leisure style to five styles. ME&CITY, Moomoo, ME&CITY KIDS and other high potential brand businesses began to exert their strength gradually, while operating the B2C e-commerce platform. In order to cope with this change, it hired Guan Xiaotong and other five youth idols. At the same time, the United States also regard UNIQLO, Muji as the target of many brands.

From street shops to shopping malls. For a long time, the United States and the United States have focused on the street shops in traditional business circles. This shop is generally located in the core business circle, with excellent location and large traffic volume. But now it is no longer feasible. Consumers begin to pursue the consumption experience in the shopping process, and put forward higher requirements for the environment and decoration of the store.

Sinking market forces. In July 2018, the US side announced the channel upgrading strategy: targeting the 35 line market. Zhou Chengjian said frankly, in the 35 line market, in the past, it did not form a good match in terms of brand upgrading, product upgrading, retail upgrading, and organizational construction and talent development of the franchising side.

At present, these strategic initiatives still need time to judge.

　　 Can new retail break?

Smith Barney is accelerating the layout of the new retail sector. Relying on the new retail tools such as e-commerce platform, micro mall and social software, we will create three major business scenarios to make value-added stores available.

For example, it is currently creating new retail business scenarios. Since the beginning of February, more than a month's online operation has developed tens of thousands of "retail partners" in WeChat terminal company. At present, it has broken through hundreds of thousands of single transactions and over one million goods. At present, the momentum is further expanding.

The United States and ME&CITY gradually realized 24 hours of live broadcast, and two children's wear brands Moomoo and MCK routinely broadcast live every week.

Prior to this, Metersbonwe counters also worked with Tmall mobile. In view of the store's broken goods, consumers can directly purchase orders from stores. When Metersbonwe stores inventory in the region and finds the nearest store, the hummingbird run errands can be sent directly to the consumers within one hour.

The radical transformation of American Apparel is also in the process of trial and error, but it will only return to its peak, and the test will be even greater.