Terminal Weakness Seven Wolves Profit Growth Slowed In The First Quarter

< p > at the peak of a quarterly report, many a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > enterprises failed in the first quarter, and the seven wolves were not spared.

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< p > seven wolves 2013 quarterly report shows that the company achieved operating income of 950 million yuan, a slight increase of 0.46% over the same period last year, and realized a net profit of 186 million yuan (Wei Koufei), an increase of 7.17% over the same period last year, while the growth rate was 37% in the first quarter of last year.

At the same time, the company expects that the net profit margin attributable to shareholders of Listed Companies in 2013 1~6 is 0~15%, with an interval of 246 million ~2.83 billion yuan.

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< p > seven wolves said that the impact of terminal weakness in 2012 on 2013 began to appear in the reporting period, and sales revenue was affected, resulting in a slower profit growth.

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< p > industry pointed out that since 2012, the consumption terminal continued to be weak, which hindered the expansion of the seven wolves. As of the end of 2012, the company had 4007 terminal channels, a net increase of 31 over the same period last year.

In 2011, seven wolves added 451 terminal channels, of which 309 stores were added by way of franchising, and 142 stores were added directly to the camp.

Throughout the 2012 year, the net growth rate of stores declined significantly.

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< p > Lv Lihua, the first business analyst, said that the slow expansion of the expansion of the seven wolves has led to a bottleneck in the expansion of Zhang Lai's performance growth model in the past, which is also reflected in the 2013 performance.

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< p > aiming at the lower than expected revenue of the seven wolves, Guo Haiyan, an analyst at CICC, pointed out in his research report that direct sales revenue has maintained a positive growth due to the prolonged sales season before the Spring Festival.

But with the decline in franchise revenue, the sales volume of franchisees in 2012 was only slightly lower than in previous years. However, the increase in terminal retail discounts and the increase in costs have reduced profitability and affected the enthusiasm of franchisees in ordering and picking up goods.

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< p > Guo Haiyan, a CICC company, believes that in the face of the downturn in the industry, the seven wolves have adopted the practice of slow opening stores, placing credit lines and maintaining profit margins in the light of their abundant cash, a large number of terminal stores, and good reputation for many years.

If the terminal demand no longer worsens, such a practice should be able to spend the valley relatively smoothly.

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< p > there may be two points to satisfy seven wolves: in the first quarter, the gross profit margin of the seven wolves rose to 46.57%, an increase of 3.58 percentage points, mainly due to the steady progress of the product planning strategy with the black label as the main axis, and its contribution to the main business continued to improve.

In addition, in terms of inventory handling, the inventory at the end of the first quarter decreased by 17.7% compared with the beginning of the year: by the end of 3, the inventory balance was 470 million yuan.

Inventory turnover days also decreased by 24~91 days compared with the beginning of the year, down 9 days compared with the same period last year, reflecting that the company was still vigorously carrying out "terminal inventory" in the first quarter.

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< p > Guo Haiyan pointed out that in the medium to long term, there is still much room for improvement in the seven wolves in terms of efficiency and profitability.

Because of its strong brand building and product planning capabilities, the channel can sink to the three line and below cities, and it is expected to maintain a long-term competitiveness in the middle end menswear brand.

However, it is noteworthy that the international mid end men's wear brands are in the process of cutting prices and sinking channels in China due to the continuing slump in terminal sales.

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