Statistics from the Bureau of Statistics show that from January to June, the total revenue of the textile and clothing and apparel industries above designated size nationwide was 688.48 billion yuan, a year-on-year increase of 4.5%, and the total profit was 30.73 billion yuan, a year-on-year increase of 4.0%. However, the editor recently discovered that while national clothing profits are increasing, leading listed company brands have rarely encountered a collective Waterloo!
Semir and Peacebird’s profits both fell by more than 95% after deductions.
The mid-term results of tens of billions-level companies are collectively Waterloo
Recently, the A-share mid-term financial reporting season is coming to an end, and the performance of the apparel industry is generally sluggish.
Shenzhou International: Interim revenue increased by 19.6% to 13.5928 billion yuan; interim net profit increased by 6.3% to 2.3666 billion yuan.
Heilan House: Interim revenue fell by 6.11% to 9.5157 billion yuan; interim profit fell by 22.69% to 1.2758 billion yuan, and after non-discounting, it fell by 20.23% to 1.2668 billion yuan.
Jiumuwang: Interim revenue fell 7.84% to 1.2867 billion yuan; interim loss was 5.999 million yuan and profit after non-profit deduction was 5.061 million yuan.
Peacebird: Interim revenue fell 16.31% to 419.7 million yuan; net profit fell 67.57% to 133.3 million yuan, or 98.20% to 5.22 million yuan after non-discounting.
Semir Apparel: Interim revenue fell 13.43% to 5.641 billion yuan; net profit fell 84.31% to 104.4 million yuan, and after non-discounting, it fell 95.92% to 25.01 million yuan.
Ruyi Group: Interim revenue increased by 41.66% to 369.4 million yuan; interim profit was 38.806 million yuan, 39.158 million yuan after non-profit deductions.
Biyinlefen: Interim revenue increased by 8.57% to 1.3132 billion yuan; interim profit increased by 20.15% to 294.8 million yuan, and the increase after deduction was 18.29% to 265.5 million yuan.
Elise: Interim revenue increased by 6.49% to 1.1708 billion yuan; interim profit fell by 72.97% to 50.400 million yuan, and after non-discounting, it fell by 76.58% to 40.943 million yuan.
Aimer Shares: Interim revenue fell 1.86% to 1.701 billion yuan; interim profit fell 40.92% year-on-year to 150.8 million yuan, and after non-profit deductions, it fell 44.74% to 120.9 million yuan.
Meibang Apparel: Interim revenue fell 47.49% to 723.0 million yuan; interim loss was 689.3 million yuan, and loss after deduction was 662.9 million yuan.
Disu Fashion: Interim revenue fell 18.63% to 1.1006 billion yuan; interim profit was 251.8 million yuan, a year-on-year decrease of 35.44%, and after non-discounting, it was 197.7 million yuan, a year-on-year decrease of 43.57%.
Mulsanne Group: Interim revenue fell 12.9% to 1.0486 billion yuan; interim profit fell 91.3% to 4.208 million yuan.
Winner Fashion: Interim revenue fell 5.93% to 2.896 billion yuan; net profit fell 6.8% to 260.6 million yuan.
Among them, the industry leaders Semir Apparel and Peacebird both saw their profits fall by more than 95% after the deduction. Both companies are tens of billions of companies, which shows that in the unfavorable environment, the traditional clothing industry with low profitability has a huge erosion of profits due to rigid costs. . From the perspective of profit distribution, the profits of the textile and apparel industry mainly come from sports companies and export manufacturing companies such as Anta, Li Ning, and Shenzhou International.
Clothing industry data:
About 2,800 stores will close in the first half of 2022
In the first half of 2022, the trend of store closings will intensify. According to incomplete statistics from the Retail Research Center of Linkshop, at least nearly 4,700 offline stores were closed in the first half of the year, including many leading brands with strong comprehensive strength such as Walmart, Innisfree, and Haidilao.
The apparel industry was the industry with the largest number of store closures in the first half of the year. Statistics show that in the first half of 2022, more than 2,800 stores in the apparel industry were closed, covering 14 companies, including foreign fast fashion brands A&F, GAP, H&M, and MONKI, as well as domestic apparel brands Metersbonwe and Semir.
Among them, SELECTED, the men’s clothing brand of Lingzhi Fashion, announced the closure of more than 1,300 stores, while Semir closed 860 stores, Metersbonwe 351 stores, and H&M planned to close 240 stores.
In recent years, the keywords surrounding fast fashion have been store closures, downsizing and retreat. Many international fast fashion brands, including British fast fashion brands NEW LOOK and Topshop, American mass fashion brand Forever21, and fast fashion brand Old Navy, have officially announced their withdrawal from the Chinese market.
Against the background of epidemic containment measures and weakening consumer confidence, low- and middle-income consumer groups have become more price-sensitive and have reduced related expenditures. This has made local brands even less competitive. Even the performance of groups such as Anta and Li Ning has shown that Consumers prefer professional products, and apparel products performed sluggishly.
The difficulties in the apparel industry also show that profit performance lags far behind revenue performance, which is a reflection of the industry’s inefficiency. Therefore, most brands in the apparel industry are usually more difficult to revive after experiencing adversity. Meibang Apparel needs to be mentioned again here. As China’s first generation representative brand, it has become a thing of the past and the outcome is difficult to reverse.
high pressure
Will the textile industry see a market turnaround in the second half of the year?
In recent times, inflation has led to a decline in demand, and major retailers in the United States are trying their best to reduce inventory; at the same time, due to high inventory levels in clothing and non-essential categories, some orders have to be canceled to reduce the company’s profitability. Overall inventory levels. This is still not very optimistic for the next textile market, and the recent pressure from the clothing industry is gradually being transmitted to the textile market. The recent market survey of the third quarter by the Home Textile Association shows that the industry is still not very optimistic.
1. Insufficient market orders is the primary problem
Textile companies generally believe that the reduction of market orders is the primary problem they face, especially…This is more obvious for small and medium-sized enterprises. In the first half of this year, due to the outbreak of the epidemic in many places in China, textile industry companies experienced regional phased shutdowns. According to the results of the “Questionnaire Survey on Enterprise Production, Operations and Problems Faced” conducted by the China Home Textile Association, a relatively high proportion of home textile enterprises were suspended within the range of two weeks to one month, accounting for 54%. The main factors for business shutdowns are the epidemic lockdown, insufficient orders, and insufficient supply of raw materials. At the same time, “epidemic fluctuations affecting production and life” are also the main problems reported by the interviewed companies in domestic sales.
Orders decreased and corporate inventories increased in the second quarter. According to the results of China Textile Federation’s “Business Management Questionnaire Survey”, 63.6% of companies increased their inventory of finished goods in the second quarter.
2. The textile market is cautiously optimistic about the forecast for the third quarter.
According to the results of China Textile Federation’s “Second Quarter Enterprise Management Questionnaire Survey”, 34.4% of home textile and textile enterprises expect that ordering demand will increase in the third quarter, which is slightly 1.1 percentage points higher than that of enterprises with increasing ordering demand in the second quarter; it is believed that the third quarter will increase ordering demand. 51.6% of the companies will increase the output of their main products in the quarter, which is 18.3 percentage points higher than the companies with “production increase” in the second quarter. 18.2% of enterprises are optimistic about the overall performance of the industry in the third quarter, an increase of 9.1 percentage points from the second quarter; 33.3% of enterprises are not optimistic, a decrease of 3.1 percentage points from the second quarter. Overall, home textile companies are generally cautiously optimistic about industry performance expectations in the third quarter.
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