The Inventory Of China'S Textile And Clothing Companies Has Increased Rather Than Decreased

On spin clothing On the premise of continuous "de stocking" in the past two years, the inventory of textile and clothing companies has increased rather than decreased. With the release of the third quarter reports of various clothing listed companies, the performance of men's clothing enterprises, including Meibang, Seven Wolves and Nine Muwang, declined.

1 "Pants King" has an inventory of 700 million yuan

In the first three quarters of this year, the performance of men's clothing listed companies generally declined. Among the 11 listed companies that have published their third quarterly reports, 8 companies have suffered from declining performance, and 9 have inventories of more than 200 million yuan. Among them, Septwolves saw the first decline in net profit in a single quarter since 2006, and its net profit declined by 7.35%. Jiumuwang's revenue and net profit fell from January to September this year, down 1.18% and 9.6% respectively year on year.

It is understood that Jiumuwang has been in a weak sales situation since 2012. It should have completed sales of 2.75 billion yuan, with a year-on-year growth of 21.8%, but in fact it only increased by 15.24%, far less than the growth rate in 2011 (34.78%). Behind the decline in performance is Jiumuwang's high inventory level.

Data shows that by the end of the third quarter of 2013, Jiumuwang still had 701 million yuan of inventory at the top, almost approaching the highest level in history, and the inventory turnover rate was only 1.09%.

At the time of the release of the 2012 annual report, Jiumuwang's business plan for 2013 was relatively optimistic - the sales revenue was expected to be 2.75 billion yuan, up 5.77%. However, in the first three quarters of this year, it only achieved a revenue of 1.761 billion yuan, or 64% of the annual target. This means that in the fourth quarter, Jiumuwang must achieve a sales volume of nearly 1 billion yuan in order to achieve the business objectives of this year, which is almost impossible.

2. Extensive expansion left sequelae

As for the decline of performance of men's wear listed companies, some analysts believe that this is the sequela of extensive expansion of men's wear companies. In addition, the decline in the performance of men's clothing listed companies is also due to the fact that consumer demand is not rising, shop rents and labor costs are rising, and the impact of online shopping is also the reason.

Taking Jiumuwang as an example, in the context of the continuous downturn in terminal sales, in order to control business risks, it invested more carefully in the construction of its marketing network and slowed down the progress of opening stores. In the first three quarters of this year, instead of adding new stores, nearly 90 franchise stores were closed.

It is understood that the contraction strategy of King Jiumu started last year. Jiumuwang said that "the company will adjust its business strategy in a timely manner according to the changes in the market environment, and improve its business ability from the aspects of commodity serialization, multi brand operation, and improving the refined operation ability".

The inventory of the textile and clothing industry continues to grow. Some insiders said that "the domestic demand market is relatively low, and the most fundamental problem is that the demand has not been solved". Zhu Qinghua, a researcher in the light industry of CIC Consulting, believes that the increase in export volume is the key to easing the high inventory of clothing. If the international economy falls into "economic quagmire" again, it is difficult for the inventory of the textile and clothing industry to return to normal.

Relevant analysis "Double 11" performance or explosive growth

The overall trend of clothing enterprises in the fourth quarter of this year will not be significantly improved, and it is expected that the annual performance will continue to decline. However, as the "Double 11" is approaching, the industry may grow explosively in the short term, and investors can focus on it.

Some analysts believe that under the dual pressure of weak terminal demand and the "closing trend" of sports brands, men's wear brands have begun to feel the importance of refined channel management. However, due to the large investment in this area, the performance may still decline in the fourth quarter.