"The King Of Jacket" Seven Wolves Business Is Not Good! Net Profit Last Year 4 Hundred Million, Lost 42 Million 50 Thousand In The First Quarter.

The local men's clothing brand, Fujian's seven wolf industrial Limited by Share Ltd, has recently disclosed its annual report in 2019. During the reporting period, the company realized total revenue of 3 billion 623 million yuan, an increase of 3.02% over the same period last year, operating profit of 420 million yuan, down 9.22% from the same period last year, and net profit attributable to the parent company 347 million, up 0.29% over the same period last year.

During the reporting period, the seven wolves continued to push forward the development strategy of "industry + investment". In the aspect of garment industry, the company continued to deepen the new retail reform, promote the innovation and improvement of management and management, and strive to achieve "take root and grow accurately". In terms of investment, it tracks the acquisition and investment projects around fashion and big consumption areas, and at the same time, focuses on promoting the post investment management of the invested projects. Work.

During the reporting period, the seven wolves released a brand new strategy to strengthen the brand DNA, in addition to the "seven wolves" main brand, but also to strengthen the new brand, especially the "KarlLagerfeld" training.

In 2020, the seven wolves will focus on the following tasks: build core competitiveness, focus on the competitiveness of single products, and match high-quality suppliers. Customer demand oriented, according to different consumer needs clear product labels, targeted for category planning and development.

Upgrade brand image, focus on product driven marketing, try to interact with consumers through IP cultural crossover, brand cross boundary linkage, well-known designer crossover and other marketing tools to rejuvenate me.

Digital transformation, continue to promote the application and upgrading of digital intelligence tools, strengthen the integration of online and offline, open up online and offline resources, realize the digitalization of product flow, logistics, information flow and capital flow, and layout smart stores, directional recommendation, personalized customization with the core of big data.

Building a flexible supply chain, taking customer and market demand as the guidance, integrating internal and external resources, constructing a quasi cross fast reverse supply chain guarantee system, providing quality products with high quality, high cost performance, flexible and fast response, and helping brand development.

Effectively promote the operation and promotion of new brands, especially the Carle Lagrange brand, establish Carle men's clothing and women's clothing supply chain, and introduce outstanding talents to Carle by means of equity cooperation and product cooperation, so as to find suitable partners to match the brand authorization and shine the vitality of "KarlLagerfeld" brand.

Continue to focus on clothing related fashion consumption areas, mining ingenuity, IP culture, strong brand strength, product quality projects, build a resource sharing fashion consumption platform. We should further improve the investment decision-making mechanism, risk management and control mechanism, post investment follow-up mechanism, and so on, so as to control investment risks and promote the healthy development of investment business.

In addition, the 2020 first quarter report released by the seven wolves also showed that during the reporting period, the company realized revenue of 666 million yuan, down 29.7% compared to the same period last year, and net profit to the parent company was 42 million 52 thousand and 600 yuan, down 145.89% compared with the same period last year. The net profit was 25 million 579 thousand and 500 yuan, a 139.87% decrease compared with the same period last year.

The reason for the negative growth of operating income is explained by the seven wolves, which is mainly due to the impact of the epidemic on the reporting period, and the implementation of strict epidemic prevention and control measures throughout the country. The shopping hours in shopping malls, shopping centers and other places are generally postponed, and the consumption terminals stagnate. The company and the upstream and downstream industry chain enterprises are delayed, resulting in a significant reduction in the company's operating income.

The industry believes that the seven wolves brand positioning accurately, and constantly optimize product design, even in the warm winter weather is not conducive to clothing sales, economic slowdown, clothing sales under pressure, the income is basically the same as the same period in 2018. At the same time, the gross profit margin of the company increased in 2019, mainly because the gross profit margin of the garment industry was improved by 4.04pct to 48.08% compared with the same period last year. The gross profit margin of the clothing brand improved brand popularity and reputation. The clothing sales volume decreased by 9.52% compared with the same period last year, and the average selling price of clothing increased by 13.25% over the same period last year.

Everbright Securities analyst Li Jie believes that from the perspective of development history, in recent years, the seven wolves brand menswear business has gradually recovered, and brand, product and channel reform has achieved initial success. However, in 2020, the impact of overlay on the one hand, on the one hand, short-term passenger flow pressure, future economic and consumer income expectations are not clear, demand side expects short-term performance is low, adverse effects on the company's performance, attention should be paid to the end of the epidemic and the turning point of macroeconomic improvement. In addition, considering the uncertainty of the recovery of macro-economy and terminal retail under the influence of short-term epidemic situation, the growth of online business and needle spinning business of seven wolves is still under pressure, and the cost and asset impairment losses still remain under pressure.