What Is The Specific Reason For The Decline In Performance?

In recent years, the profitability of the global garment industry has declined, and the "noble bird" is also experiencing this dilemma.

According to statistics, in 2013 ~2014, the net profit of precious bird company decreased by 19.8% and 26.3% compared with the same period last year, and the rate of decline is gradually accelerating.

Then, what is the specific reason for the decline of the company's performance?

In the 2014 annual report, due to the different stages of development of the industry, the adjustment time was slightly later than that of the industry, and the performance declined to some extent due to factors such as channel adjustment and dealer storage.

The main products of the company are

Sportswear is the main factor, and the poor sales of clothing products is the main factor causing the decline in income.

In 2014, the clothing revenue of the company was 860 million yuan, a decrease of 460 million yuan over the previous year, down 34.7% from the same period last year. The sales of sports shoes remained stable, and in 2014, the income was 1 billion 30 million yuan, down 3.5% from the same period last year.

At the same time, in 2014, the company planned to close the 100~150 store, but the number of actual outlets was up to 534 (about 5000 total). The poor performance of stores resulted in shutting down, which was also an important reason for the decline in revenues.

What is the company's plan to improve in 2015 in response to the decline in sales and the poor operation of some stores? The answer is to continue to adjust the number of stores.

In its 2015 business plan, the company pointed out that the annual revenue of the scheme was 2 billion 50 million yuan, a slight increase over the same period in 2014, and it was intended to reduce 200~300 stores.

It can be seen that the adjustment of stores with poor profitability is still an important strategy for companies to improve their performance.

In addition, a slight rebound in the industry is good news for the company.

In this regard, "investor newspaper" reporter statistics of sports shoes and clothing listed companies in recent years, the performance of the situation, for investors to refer to.

It can be seen from the chart that in 2012 ~2013, sports brand enterprises were more difficult, and most enterprises were facing a decline in net profit.

Take 2013 as an example, except for all enterprises in Li Ningwai, net profit fell year-on-year, and Lining's net profit was also in deficit.

But by 2014,

And other enterprises net profit growth has shown signs of a rebound, net profit has increased a certain amplitude.

A quarterly report also shows that the company achieved a net profit of 80 million yuan, an increase of 0.6% over the same period, and the performance began to show signs of stop, but there is still a big gap from the net profit growth.

In addition to improving their business, many garment enterprises have begun to expand new profit margins through mergers and acquisitions and pformation.