Hai Lan Home'S Performance Growth Slowed Down Year By Year: Inventory Accumulation Women'S Clothing Failure

Recently, Hai Lan's home office released its annual report in 2018, achieving an annual revenue of 19 billion 90 million yuan.

Although the performance of Hai Lan's home has kept increasing, its revenue has slowed down compared with the previous years, and the sales volume of its single brand "Ai Ju rabbit" is decreasing year by year.

Performance slowdown, inventory backlog serious

According to the financial report of Hai Lan's home in 2018, the annual operating income reached 19 billion 90 million yuan, an increase of 4.89% over the same period, and net profit of 3 billion 455 million yuan to the parent company, an increase of 3.78% over the same period last year. Net profit after deducting the net profit was 32.68 billion yuan, down 0.63% from the same period last year.

Although in recent years, the performance of Hai Lan home has maintained a sustained growth, but has slowed down.

Data show that from 2014 to 2018, the net profit of Hai Lan's home was 2 billion 374 million yuan, 2 billion 953 million yuan, 3 billion 123 million yuan, 3 billion 328 million yuan and 3 billion 450 million yuan respectively, and the net profit growth rates were 75.83%, 24.50%, 5.74%, 6.5% and 3.78% respectively.

At the same time, inventory accumulation has become a big hidden trouble for Hai Lan's home.

According to the results of the report, the company's stock price loss has increased substantially compared with 2017. The inventory at the end of the reporting period was 9 billion 473 million yuan, up 980 million yuan from the end of last year, an increase of 11.55%.

In addition, the proportion of goods that can be returned to the company's stock in the company's inventory is large, and the company's inventory depreciation reserve policy depends on any policy and whether it has an impact on the net profit of the parent company.

According to Ho Lung network, for the reasons for the serious inventory of Hai Lan's home, there are market participants who believe that the operation of Hai Lan's home is a light asset mode, that is, outsourcing the production process and increasing the number of stores.

While Hai Lan's home is focusing on brand building and channel operation, franchisees do not have to participate in the specific operation of franchised stores.

This means that the three parties are separated from each other, and they can not achieve unified results in terms of market demand, goods management and sales data. This will cause worries. Over time, stock accumulation has become a common phenomenon.

Women's clothing "love rabbit" single store revenue decline year by year

In the case of slower performance, Hai Lan's home has also undergone a series of pformation.

Located at the road of diversity, Hai Lan's family has developed business in women's wear, children's wear, home and overseas.

At present, Hai Lan's home has three main brands: Men's clothing brand "Hai Lan Jia", women's clothing brand "love rabbit" and custom brand "San Keno".

Among them, "Ai Ju rabbit" is positioned as a popular fashion dress brand. The target customers are 18 to 30 years old. According to Harean house's financial report, "Ai Ju rabbit" has a business income of 1 billion 97 million yuan, gross profit margin 23.93%, a decrease of 3.86% over the previous year.

In addition, the average single store revenue of "love hare" is also declining year by year, 1 million 306 thousand and 300 yuan in 2016 and 1 million 188 thousand and 500 yuan in 2017, while the average single store revenue in 2018 is only 856 thousand and 900 yuan.

And through simple calculation, it is easy to find that the daily sales volume is only two thousand yuan. Considering the cost of labor, rent and other expenses, the operating profit pressure of shops is not small.

There are many indications that the route of the "love rabbit" is a differentiated location between the middle and low and the two or three line cities.

According to the China commercial network, people in the industry believe that under the rapid expansion speed and the low and middle position, fierce competition and discount sales have led to lower gross margins.

In addition, the industry characteristics of women's clothing also means higher R & D expenditure and electricity supplier matching expenses.

According to Harean's home financial report, the gross profit margin of "Ai Ju rabbit" in 2018 was 23.93%, down nearly 4 percentage points from the same period last year.

In the same period, the gross profit margin of "Haolan house" brand was 43.4%, and the "San Keno" gross margin was 49.25%.