What happened to the clothing brands? Since the outbreak of the “Black Swan” incident, many clothing companies in our country have faced a major “blow”. For example, the national sports brand Guirenniao has officially entered the reorganization process and is also facing a delisting crisis; it is called the “Chinese version of “ZARA’s La Chapelle has suffered losses for three consecutive years, with a market value of only 1.136 billion.
In the past quarter of 2021, another clothing company seems to be facing the same “fate”, that is, the domestic men’s clothing “giant” who was once as famous as Heilan House “Seven wolves. Speaking of Septwolves, it can be said to be a household name. Seven or eight years ago, Septwolves could be regarded as a domestic “high-end” clothing brand.
Just in April 2021, Septwolves released its company’s 2020 financial report. Judging from the data, Septwolves are currently The current situation is really worrying.
Results experienced negative growth for the first time, with 370 stores closed in one year
According to annual According to financial report data, for the whole year of 2020, Septwolves’ revenue dropped by approximately 8.08% to only 3.33 billion compared with 2019; while the net profit from equity ownership dropped by 39.83% to only 347 million. This performance is the first time since Septwolves went public that it has shown a negative growth trend. From this point of view, there will definitely be some “problems” in the company’s capital turnover.
Looking at the “path of decline” of other clothing brands, they all have one thing in common, that is, the company’s inventory is too high. Judging from the data, in 2020, the inventory of Septwolves has reached 27.9957 million pieces, an increase of 6.14% compared with 2019. For clothing companies, excessive inventory is very “dangerous”.
Why do you say that? Fashion is very important for the products of clothing companies. In today’s society, clothing companies are under a lot of “pressure”. They must keep up with the current trend and continue to “update” their products as time goes by. To put it in layman’s terms, if Septwolves sell outdated old clothes, sales will naturally decrease.
Presumably the difficulty in operating its stores is also related to the excessive inventory. Data shows that in 2020, the average revenue of all direct-operated stores owned by Septwolves showed a downward trend, down about 9% from 2019; at the same time, Septwolves began to close a large number of stores. In 2020, the number of closed stores reached 370. Home.
It can be seen from these that the current “crisis” of Septwolves is not small. Looking back on its “peak period” in the market, this situation is very sad.
The highest market value is 24.9 billion yuan, and the number of stores exceeds 4,000
As an “old” men’s clothing company, Septwolves has a long “history”. Since the 1980s, its founder Zhou Shaoxiong and his brothers have started a clothing business, and then founded Septwolves. In 2004, it even listed Septwolves, becoming the first men’s clothing company in my country to go public.
Since its launch, Septwolves has made great efforts, and its results have become “excellent” year after year. By 2012, Septwolves even had more than 4,000 stores across the country, and its revenue that year had reached 3.48 billion, creating 563 million yuan. You know, this is the performance of 8 years ago.
And its market value is also growing. In 2015, Septwolves ushered in the “peak” of market value, reaching a maximum of 24.9 billion Yuan, which shows that its development trend is excellent. From the perspective of consumers, Septwolves is also very popular. He donated 5 million yuan to the Wenchuan earthquake and gained a good reputation; Zhang Hanyu, Sun Honglei and other endorsements also established the brand image of Septwolves.
But the good times did not last long. In the years after the market value reached its peak, the overall situation of Septwolves was “not optimistic.”
The market value is only 4.383 billion yuan, and thousands of stores have been closed
Looking at Septwolves’ reports in recent years, it can be seen that although its revenue has increased year by year since 2017, the increase has been decreasing, as has the net profit of shares. It was not until 2020 that the performance began to grow negatively.
Comparing the data in 2017 and 2019, the revenue growth of Septwolves fell from 16.87% to 10.99%; while the net return of shares The profit increased even more, falling directly from 18.48% to 0.29%. Looking at these data, we can see that the crisis of the Seven Wolves has already been “evidenced”, and it is not surprising that it has now begun to experience negative growth.
At the same time, according to statistics, since the peak of Septwolves, it has closed thousands of stores; at the same time, its market value has also “evaporated” significantly, as of April 19, 2021 On that day, the market value of Septwolves was only 4.383 billion yuan. Compared with the 24.9 billion yuan that year, the market value dropped by as much as 82%.
Regarding the current situation, the Seven Wolves have also publicly stated that this is due to the “black swan” “The impact of the incident. However, some people in the industry said that judging from its financial reports for many years, the current situation of Septwolves will happen sooner or later, and the “black swan” incident only accelerated the company’s crisis.
However, Septwolves are relatively optimistic about their company’s situation. On April 14, 2021, Septwolves released a performance forecast for the first quarter of 2021. It is expected that its company’s net profit will rise to the highest level compared with the previous year. 273.12%, with a maximum of 72.8 million yuan. At the same time, it also stated that the company’s operating conditions will be effectively improved in 2021.
Whether the Seven Wolves are “turning the corner” or “going downhill” ”, let us wait and see.</p
