Dressed Up Like A Horse? Net Profit Decreased By 100% - 90% In The First Half Of The Year

In the same period of the year, the net profit of the famous brand was revised by 0.1% to 7.5% in the same period of last year.

In the first half of this year, the company increased losses due to the new epidemic situation. Prior to this, the first quarter report released on April 29 showed that the company expected net profit to drop by 70% - 90% year on year.

SEMAR clothing has two main brands, namely the popular casual wear brand "SEMA" and the children's clothing brand "Balabala". After long-term cultivation and operation, these two brands have become the forefront of leisure clothing and children's wear industry.

It is understood that in the past two years, SEMAR clothing has been in the development of overseas business. In January 2019, SEMAR clothing established an overseas business center to coordinate and promote the layout and development of SEMAR and Balabala brands in the international market.

In terms of adult clothing, SEMAR clothing has obtained the business authorization of international high-end fashion women's clothing brand Jucy couture in Greater China region, which has supplemented the layout of the high-end fashion women's clothing category of SEMAR, and improved the brand matrix of SEMAR's boutique category and the layout of SEMAR's high-end channels in greater China.

In terms of children's wear, in 2019, Semir clothing also wholly acquired the middle and high-end children's wear group in Europe - kidiliz group, and successfully introduced its CATIMINI and absorba brands into the Chinese market, becoming the second largest children's clothing company in the world, and successively opened flagship stores in key cities and tmall platform.

However, according to the performance forecast of the first quarter in 2020, the loss of French kidiliz group, which is owned by SEMA clothing, will increase. According to Guo Haiyan, an analyst, it is estimated that the loss of the kidiliz brand will be about 300 million yuan, and the increase in the loss is mainly due to the closing of stores and the termination of contract of some sub brands.

Cheng Weixiong, an expert in textile and garment brand management, said that kidiliz's poor performance and even increased losses were mainly due to acclimatization. Samma needs time to better manage the brand operation of kidiliz, and kidiliz also needs time to adapt to the changes in the domestic and foreign markets. In the whole process, it is inevitable to pay tuition fees.

It is understood that in 2019, SEMAR e-commerce will continue the multi brand and multi category strategy, focus on core business, and realize rapid growth of performance driven by digital operation. Last year, it achieved 16.307 billion yuan of revenue in China, an increase of 9.29% year-on-year, accounting for 84.33% of the total revenue, and 3.029 billion yuan of overseas revenue, with a year-on-year increase of 279.53%, accounting for 15.67% of the total revenue.