Brand Apparel Home Textiles Interim Performance "Led" Growth

By product price increase, consumption environment is better.

According to Wind statistics, as of August 23rd, Shenyin Wanguo

In the first half of this year, under the background of continuous improvement in the export and domestic demand market, the overall operation environment of the textile and garment industry has been improving. Brand enterprises have actively expanded the market to promote sales growth, and the price of products has also been raised.

Of the 51 companies that have published semi annual reports, 7 companies have increased their net profit by 1 times over the same period.

Among them, Smith Barney clothing net profit in the first half of 376 million yuan, a significant increase of 833.06% over the same period last year.

The growth of the company's performance is due to the enhancement of product competitiveness. The terminal retail management capability of direct and franchisees has been continuously improved, and the number of terminal stores has increased steadily. Meanwhile, the gross profit margin of the main business of the company has reached 47%, representing a 4 percentage point increase over the same period last year.

Another brand clothing company, seven wolves, also achieved a 41.29% increase in net profit due to the good sale of terminal.

At the same time, because of the increase in product prices, the profitability of Huamao shares was 357 million yuan in the first half of the year, an increase of 469.32% over the same period last year, and the net profit of the Bank of China in the first half of the year was 68 million 598 thousand and 700 yuan, up from the same period of last year.

It is noteworthy that, from the semi annual report, we can see that in addition to the good performance of the brand clothing companies in the first half of the year, home textile companies also have made outstanding achievements, and the future definite growth is also promising for the industry.

The three medium-term net profit growth rates of Fufang, Luo Lai home textiles and Meng Jie home textiles of the main textile companies of the year were 79.28%, 73.84% and 46.86% respectively.

Growth continues to conceal worries

Wind data also showed that there were 29 textile and apparel listed companies on the previous three quarters of the performance of the notice, only 4 companies pre concern, the other 25 companies were predisposed to the performance, of which three companies increased by 100%.

Pathfinder said that in view of the company's main business development is good, the market scale continues to expand, and in 2011 autumn and winter product futures booking is good, it is estimated that 1-9 months attributable to shareholders of listed companies net profit increased 50%-100% over the same period last year.

The first three quarters are also expected to be in good order.

The industry said that many textile and garment enterprises are producing according to orders. Some brands' autumn and winter orders will grow well. The year-on-year growth rate is basically over 30%, basically locking the performance of the year. The industry therefore expects that the average profit growth rate of textile and garment industry will exceed 40% this year.

However, while the growth of textile and garment enterprises is likely to continue in the future, the industry also has some problems that can not be ignored, such as rising costs, multiple pressures on exports, some small and medium-sized enterprises operating difficulties, and unstable domestic consumption environment.

The net profit in the 1-9 months is down by 20%-40% compared with the same period last year.

Huafang textile also said that factors such as Japan earthquake, North Africa turbulence, slow recovery of developed economies, increased interest rates and reserve requirements, appreciation of the renminbi, fluctuations in raw material prices such as cotton, and rising costs of labor and energy, etc., will continue to exist in the company's declining gross profit and increased financial financing costs. The company expects to continue to lose money in the first three quarters.

In addition, many textile and garment enterprises are facing certain pressure of inventory because of the rising price restraining terminal consumption demand. The industry pointed out that if the contradiction between raising prices and restraining consumption can not be resolved, the development dilemma of the textile and garment industry will be more and more apparent.

Data show that in July of this year, the volume of retail sales of all kinds of garments reached 100% in the major retail enterprises nationwide, an increase of 4.62% over the same period last year, a decrease of 2.9 percentage points compared with the same period last year, and a 6.71% increase in total retail sales in 1-7 months, which is significantly lower than the 12.87% growth rate in the same period last year.