Fujian Province Men's Clothing Industry Recovery Turning Point

The picture shows brand new products.

The signs of recovery do not represent a comprehensive start for the entire textile industry.

Under the perplexity of domestic sales and the weakening of external demand, some companies admit that retail terminals are still facing certain pressure on inventory and operating pressure due to the weak domestic demand, the industry downturn and the growth of store operating costs.

Industry resurgence

With the successive adjustment of business strategy by major enterprises, the turning point of industrial recovery has emerged.

In the first half of this year, the turnover of CABBEEN clothing increased from 335 million yuan in 2013 to 429 million yuan, an increase of about 28%; EBIDTA (profit and loss before depreciation and amortization) increased by 30%, from 123 million 600 thousand yuan in the same period last year to 160 million 700 thousand yuan; net profit rose 47.1%, increased from 76 million 909 thousand yuan to 113 million 100 thousand yuan in the same period last year; earnings per share were 0.16 yuan, increasing by 0.15 yuan over the same period last year.

Referring to the increase in turnover and net profit, the report explains that this is mainly due to the increase in the wholesale orders of CABBEEN spring and summer products in 2014.

During the period, total sales volume reached 3 million 200 thousand, with an increase of 23%.

As of June 30, 2014, the group's retail sales in 2013 were over 85%, while in 2014 the spring and summer series were over 50%, with an average retail discount of 1.4% over the previous year.

Thanks to the purchase of orders in spring and summer, Li Lang has also increased considerably compared with last year.

In August 11th, the company released its six month interim results as of June 30th.

Data show that during the announcement period, the turnover of the company was 1 billion 91 million yuan, a slight decrease of 0.2% compared with the same period last year, the profit increased by 2.4% to 248 million yuan per year, and the basic earnings per share were 20.7 yuan.

The main brand LILANZ sold at 992 million yuan, down 2.1%.

The sale of sub brand L2 was 95 million 300 thousand yuan, up 20.2%.

Operating profit increased 7.3% to 295 million yuan from 275 million yuan in the first half of last year, and the operating profit margin increased from 25.2% to 27.1%.

Net profit margin was 22.7%, up 0.5 percentage points.

Gross margin is 40.9%.

Both CABBEEN and Lee said that the recovery of domestic retail market was slower than expected, which accelerated the adjustment of retail network during the announcement period, and slowed down the pace of opening stores.

Leading enterprises have strong momentum of development, and small and medium-sized enterprises, which are the basis of the whole industry, are not allowed to make much progress.

Jinjiang economic and Trade Bureau responsible person said, "in recent years, including Tianlun Tian, San Fei Lai, Kasiron and other enterprises through the pformation of outdoor products, children's products, business performance has entered a healthy track of ascension; Philharmonic, Great East Asia and a number of enterprises through strengthening management, enhance internal control, successfully entered Reebok, Adidas and other world-renowned brand supply chain, participate in international brand foundry."

Stocks split

With the adjustment of business strategy by major enterprises, the turning point of industrial recovery has emerged.

But despite the improvement of the industry environment, the performance of enterprises is not consistent.

The overall downside of the garment industry has caused the related companies to suffer. The report card which is handed down by "nine men" as the main business is also able to confirm this situation.

The semi annual report released by the company shows that the company's operating income is 971 million yuan, down 16.56% compared to the same period last year, and the net profit attributable to the listed company is 218 million yuan, down 24.80% compared with the same period last year.

At the same time, the construction of marketing network of IPO, the largest investment and marketing project of nine Mu Wang, was completely terminated after the initial investment of nearly 400 million yuan. The company intends to use the remaining 900 million yuan to supplement liquidity.

Also faced with a decline in performance, there are also those who have just listed this year.

In the first half of the year, the revenue of the precious birds was 995 million yuan, down 19.04% compared to the same period last year. Net profit was 164 million yuan, down 5.77% compared with the same period last year.

But at the beginning of this year, the company put forward a "retail oriented" pformation and upgrading, resulting in a reduction in the inventory pressure on the retail side.

For the decline of performance,

Because the company is mainly located in the three or four line cities and sports and leisure areas, compared with other industries in the same industry, the impact of the industry cycle on the company has lagged behind.

The company admits that the retail terminal is still facing some pressure on inventory and operational pressure due to the weak domestic demand, the industry downturn and the growth of store operating costs.

This month, the company ordered the spring and summer ordering meeting in 2015. Judging from the industry's recovery trend, company management upgrade and franchisee inventory, the order performance is expected to be better than the 2014 autumn winter order meeting, laying the foundation for the 2015 profit growth.

Xun Xing, the world's second largest zipper maker, also reported that 15 of its business income in the first half of this year was 540 million yuan, an increase of 10.08% over the first half of this year. Operating profit was 58 million yuan, up 28.39% over the same period last year. The net profit of shareholders attributable to the listed company was 53 million yuan, up 41.32% over the same period last year, and the basic earnings per share were 0.34 yuan.

Xun Xing shares said that the company's delivery time, stable quality, product and customer structure optimization brought sales revenue growth, the main raw material cost was low, business profit increased more than sales revenue, and government subsidies contributed to thickening net profit, net profit growth was obvious.

Xie Jingbo, chief executive of Xun Xing, said in an interview: "the first half of the year achieved good results, the total market share of the company's zipper was around 10%, and some brand customers accounted for 70%.

Clothing accessories market in the first quarter of the market is good, many companies feel that the order rebounded, entered the peak season in March, industry differentiation, the situation in the second half of the year is not yet good judgement, outdoor sports accessories market has not yet bottomed out.

The information from zipper chamber of Commerce in Fujian province is that, thanks to the revival of the foreign trade situation, the zipper export promotion effect is obvious this year. Orders in the first half of this year increased by nearly 10% compared with the same period in the previous year, and even once there was a situation of "lack of jobs".

However, the good momentum in the first half has also affected the demand in the second half of the year. The peak season in August should be postponed for 1 months.

Electricity supplier trend

Reporters found that a number of listed men's clothing companies gave a general explanation for poor performance: inventory is still a drag on net profit, and sales promotion and labor cost rise have led to a decline in gross margin, and the market has not yet recovered.

In addition, in the face of the impact of fast fashion, luxury brands, electricity providers and so on, enterprises are seeking pformation in stores, positioning and other aspects, but at the same time, they also push up the related costs.

And the improvement of men's wear, leisure and footwear is much narrowed, indicating that the current supply chain reform is still not yet coming. Clothing brands are in the tangle of the old and new models, and reform has a long way to go.

Wu Shaoqiang, chief executive of CABBEEN, also said that e-commerce sites will be launched in late 2014 or early 2015, but will not cooperate with Tmall or Jingdong platforms.

At present, the business of domestic brands is mainly based on the sale of tail cargo, which is very bold against the strategy of Cabbeen CABBEEN. However, Cabbeen CABBEEN also has Tmall stores mainly based on tail cargo.

In the second half of the year, it will continue to focus on the pformation of retail management, improve the depth of operation in the three or four line market, and absorb franchisees in the layout of the electricity supplier channel, try O2O operation, and enhance the retail management of the birds will help improve profitability.

For the current e-commerce, Li Lang responsible person said, because the current domestic online sales market is still mainly discount sales, business profitability is relatively low, so the group has yet to vigorously develop online sales plan.

"At present, the product and price of the online sales platform are consistent with those of the physical retail stores, except for non seasonal products, when they sell their two brand products through the online sales platform," he said.