Clothing Enterprises Report Half Of The Year's Happiness And Worry About Half Of The Sports Wear.

In September, the semi annual report of clothing listed companies was released in 2019, and the leading enterprises showed different performance.

After a semi annual report on the domestic apparel enterprises listed in Shanghai, Shenzhen and Hong Kong, three listed companies in Soochow Securities pointed out that in the first half of 2019, sportswear and cosmetics continued to grow rapidly. From the perspective of category, the gold price of gold jewelry increased dramatically, compared with that of home textiles, public leisure, men's and women's clothing and upstream manufacturing sectors.

Leading enterprises are polarized, some are happy and others are worried.

In the first half of 2019, the leading enterprises in different sub sectors of the apparel industry were different. Among them, the leading sportswear enterprises performed more brighter, and Lining and Anta showed growth in performance data.

Lining reported in the first half of 2019 that revenue was 6 billion 255 million yuan during the period, up 32.7% from the same period last year, and the net profit of shareholders should be 795 million yuan, an increase of 196% over the same period last year. It is noteworthy that the retail sales of "China Lining" products increased by 54% in the first half of the year. Although the report did not disclose further "China Lining" specific revenue data, but from the perspective of expansion performance, as of the end of June 2019, the "China Lining" store reached 70. In addition, the sales volume of clothing and shoes in China's Lining series was over 5 million 200 thousand and 40 thousand pairs in the first half of the year, respectively, and the new products sold out rate (three months) were 50% and 48%, respectively.

Anta group's revenue increased by 40.3% to 14 billion 810 million yuan in the first half of 2019, ranking first in the industry. During the reporting period, the group's operating profit increased by 58.4% to 4 billion 260 million yuan; the profit attributable to shareholders was 2 billion 480 million yuan, an increase of 27.7%; the gross profit margin increased by 1.8 percentage points to 56.1%. The semi annual report in 2019 also revealed for the first time the specific performance of the FILA brand, which is more concerned by the outside world. The data show that the first half of this year's revenue increased 79.9% to 6 billion 540 million yuan, accounting for 44% of the total revenue, and has become an important force in promoting growth.

In contrast, in the first half of the year, the leading enterprises in the field of casual wear, such as American Apparel and La Natsu Bell, showed a weak state.

In 2019, the semi annual report showed that the main business income was 3 billion 938 million yuan, an increase of 35.96% over the same period last year, with net profit of 53 million 114 thousand and 400 yuan, up 218.69% over the same period last year. But according to quarterly profit data, the quarterly profit shows that the net profit attributable to shareholders of listed companies is 50 million 406 thousand and 700 yuan during the period, which shows that in the two quarter, the net profit of the United States is less than 3 million yuan.

In 2019, La Natsu Bell, who was rumored to be "closed shop" and "real control of people's mortgage", was not very good in the first half of the year. Data show that in the first half of 2019, La Natsu Bell's operating income was 3 billion 951 million yuan, down 9.78% from the same period last year, with a net loss of 498 million yuan. Meanwhile, La Natsu Bell's retail outlets decreased by 2470 in the first half of this year, a net decrease of about 26.65% from the end of last year.

Weak market seeking, high-end, fine category attention

According to the retail sales data of consumer goods released by the National Bureau of statistics, in July, the number of clothing and footwear knitted goods increased by 2.9% over the same period last year, down 5.8% from the same period last year.

China Galaxy Securities analyst Li Ang analysis pointed out that in the past year, due to weak terminal demand, the garment home textile sector performance differentiation. Although the overall scale of the industry has continued to grow, the development cycle of sub sectors is different. The future development of children's wear and sportswear is more worthy of expectation or higher growth rate. Public consumption has stabilized, and some high-end consumer brand data have recovered.

In fact, many enterprises began to launch various operational innovation measures to upgrade high-end and fine services since the two quarter of the first half of the year. They constantly ponder over the transformation and upgrading, and their performance and market feedback are different.

During the 2020 spring summer Paris fashion week, Lining further revealed to the outside world the recent layout of the "Lining fashion line" aiming at the high-end market. According to introducing, after Paris fashion week, Lining will set up Showroom specially in Paris, promote the selected series of high quality styles, and order overseas retailers. Retailers in China also tend to specializes in high-end, such as Lian Crawford and some premium high-end buyer shops and selected shoe shops.

Coincidentally, Bosideng announced in June this year that it will introduce high-end outdoor series down garments. Unlike the previous joint names with designers, Bosideng is jointly named GORE-TEX brand with a high reputation in the outdoor industry, which is mainly professional, efficient and high-end. In fact, after entering the 2019, Bosideng has been upgrading the existing down jacket brand. Bosideng stakeholders have confirmed to the Beijing News reporters that they will focus on the field of down garments in the future, transform the fashion products and upgrade the brand image, so as to enhance the comprehensive profit level and achieve transformation and upgrading.

However, in the face of changes in the overall trend of the industry, it may not be enough to introduce only high-end, high growth categories. Li pointed out that most of the textile and garment enterprises in China currently have problems such as "fabric research and development, clothing design, lack of autonomy in brand influence, insufficient core competitiveness", "marketing efficiency still has room for improvement, and inadequate attention to emerging e-commerce channels". For most brands, in addition to starting with new brands, we should continue to optimize the existing brand value, enhance the efficiency of production and marketing, and fundamentally improve the overall profit level of the industry, which may be the fundamental solution to the problem.