Road Resistance And Right, Waiting For Warmer Clothing Enterprises 2019 Annual Report Slowly Improve Performance

Recently, the annual reports of the major clothing companies listed in 2019 have been released. This reporter has combed the annual reports of 21 clothing listed companies. Generally speaking, the fourth quarter of 2019 is slightly better than the first three quarters, but we can see that the industry still faces greater pressure, and the warm winter of 2019 also brings resistance to profitability. Among them, sports brand performance is the best, men's wear and women's wear are all upgrading.

"Hard won"

From the 2019 annual report of 21 clothing listed companies, there are three companies with a turnover of more than ten billion yuan in 2019, and Anta sports 33 billion 927 million yuan in the top of the list. The other 2019 companies with annual revenues of more than ten billion yuan are Lining's revenue of 13 billion 870 million yuan and 12 billion 965 million yuan of special revenue. There were also three enterprises with a turnover of over 5 billion yuan in the following 2019 years, with 8 billion 183 million yuan in XTEP's revenue, 7 billion 928 million yuan in Taiping bird's revenue and 5 billion 482 million yuan in American Apparel's revenue. Winning fashion, seven wolves and Hinur all achieved over 3 billion yuan in 2019.

In terms of net profit, Anta sports, which is far ahead of other enterprises in 8 billion 695 million yuan, has become the highest net profit enterprise in 2019. In 2019, there were four enterprises with net profit of more than 1 billion yuan, ranking two to four respectively. The net profit of Ordos was 1 billion 341 million yuan, Lining's net profit was 1 billion 266 million yuan, and XTEP's net profit was 1 billion 234 million yuan. Thereafter, the enterprises with net profit of over 500 million yuan in 2019 were 980 million yuan in profit, 624 million yuan in net profit and 552 million yuan in net profit. In the 21 clothing listed companies that reporters combed, there were 16 enterprises with net profit of over 100 million yuan in 2019.

From the year-on-year increase in revenue, 15 enterprises in 21 enterprises have achieved positive growth in business revenue. He has been leading the race with an increase of 108.10%, winning fashion growth by 64.56%, and positive fashion growth by 47.83%, ranking two or three respectively. In addition, Lining, XTEP, Be Meleven, Li Lang, di Su fashion, Lang Zi shares and George Bai and other enterprises all achieved double-digit growth in 2019 revenue.

The year-on-year net profit growth is much more optimistic than the three quarterly report in 2019, and 13 of the 21 enterprises achieved positive growth in net profit. The outdoor brand Pathfinder saved the fastest growth of the company with a 162.16% growth rate, followed by Lining's growth of 76.90% and Anta's growth of 52.5% in two or three place. In addition, six enterprises, such as winner fashion and Ordos, have achieved double-digit growth in net profit.

On the whole, ten companies including Anta, Lining, XTEP, winning fashion, security fashion, such as erlevin and other enterprises have doubled their revenues and net profits. The five companies of Hinur, LAN Zi, nine Mu Wang, Taiping bird and Anne have not increased profits. The Pathfinder and Erdos enterprises have not increased profits, and four enterprises have lost both revenues and net profits.

"Rising trend is gratifying."

According to the annual reports of enterprises in 2019, half of the total revenue and net profit increased accounted for half of the sample, 40% of which were women's clothing enterprises, and men's and sports enterprises accounted for 30% of the total.

Women's clothing part, the biggest winner in net profit growth in 2019, said in the annual report that the main reason for the increase in earnings was due to the consolidated entry of KeenReach's performance in July 2019. At present, the winner fashion has operated 8 independent brands to cater for the different needs of the wider customers. After large-scale development, it has actively worked with distributors, and has continued to increase the online product mix in the electricity supplier, and has strengthened the integration with offline products.

In 2019, "Di Su fashion" actively explored the multidimensional interoperability between online and offline, invited celebrities to visit Taobao brand live rooms, expanded Xiaohong book and other marketing channels. Through social opinion leaders, fans and grass seeding fans were expanded to continuously enhance the penetration of high value users. It has also entered into strategic cooperation with Iqiyi's "youth you 2" variety show, participating in program recording as an official authorized clothing brand, and further expanding its influence by broadcasts the effect of Iqiyi video playback platform.

Mr Bi said that in 2019, the supply chain and channel management had been optimized. By the end of 2019, the terminal stores under the Internet had reached 875, compared with the growth of over 100 by the end of 2018. It is estimated that in 2020, the company will continue to expand its offline stores.

Sportswear, Anta sports profit growth is mainly due to its brand FILA (FILA) as a direct mode, and the gross profit margin is higher. The contribution ratio of the brand's revenue contributed to the improvement of the direct battalion ratio, thereby boosting the interest rate.

Lining said that the net profit growth rate of the company was significantly higher than that of the revenue, mainly due to the increase in gross margin, the company's reasonable control over advertising expenses, the decrease in the sales expense rate, the increase in interest income from government subsidies and financial products, and the one-time income of the subsidiary land disposed of by 270 million yuan. The sales discount of new and old products has been improved, and the cost of tag has been further optimized.

In terms of men's wear, Georges white insisted on business professional wear in 2019, supplemented by high-end customization and retail for men and women, and vigorously developed the school uniform market strategy. He said that in the coming period, the company will take George White Life Inc as an operation platform and make future community as an important strategic direction of the company through the co-ordination and operation management of specific future community projects.

The seven wolves said in the performance express that in 2019, influenced by many uncertain factors of macro-economy, the economic downturn was under pressure. The company insisted on advancing the strategy landing, and actively increased the market development efforts. The sales revenue of the company increased slightly, and the net profit attributable to the parent company was basically flat.

Li Lang said that the slowdown in profit growth was mainly related to the 18 year light business inventories in the second half of the year and the decrease in gross margin brought to the distributors by offering 19 discount products in the autumn and winter products.

"Cause for some reason"

In addition to sports brands, the distribution of other types of products in 2019 increased on average but there were different reasons for the decline in performance.

The total retail sales and operating income of Taiping bird in women's wear business continued to grow in 2019, but the growth rate slowed down compared with the previous year. Taiping bird said that because of the adjustment of its subsidiary Ningbo Taiping bird garments manufacturing Co., Ltd., the proportion of external businesses with low profit margins has been reduced, and the income of thick coat, thin coat and woolen sweater has been reduced by the influence of warm winter weather. In addition, the number of Direct stores at the end of the Taiping bird business increased and the rental cost increased correspondingly.

For the change of performance, Langer said that the performance of foreign subsidiaries in the Chinese stock market was poor, resulting in a sharp decline in operating performance. The company intends to make provision for impairment of assets between 90 million yuan and 120 million yuan.

In terms of men's clothing, nine Mu Wang said that revenue rose in 2019, mainly due to the growth of FUN brand business and the merger of ZIOZIA brand revenue. Net profit fell year-on-year, mainly due to the implementation of the new financial instruments guidelines, resulting in the decline in earnings of CAITONG securities stock disposal during the reporting period. At the same time, during the reporting period, the company increased its channel expansion and increased the cost of related channels. In addition, the decline in inventory prices during the reporting period increased.

Children's clothing company Ann said that the decline in performance is due to the increase in the reporting period, the sales discount has declined, resulting in a certain decline in gross margin sales. In the same period, the company increased the strength of shop opening, and the rent, decoration costs, labor costs and promotional expenses increased.

On the whole, the performance of all garment enterprises improved in 2019, and the total number of enterprises that accounted for double increase in revenues and net profits accounted for a significant increase compared to the three quarterly reports in 2019. However, the outbreak of new crown pneumonia in early 2020 has also had an unmeasurable impact on the whole industry. No matter domestic or international demand, it will not be optimistic for the next period of time. Under the circumstance of unstable overseas epidemic, the market is expected to remain in a volatile environment.