The Financial Report Of Textile And Clothing Enterprises In The Third Quarter Showed Obvious Differentiation

With the downturn in the domestic market and consumer terminals spreading to the whole clothing Industry, spin Apparel enterprises' financial reports in the third quarter of 2013 showed obvious differentiation.

According to statistics, among the 14 textile enterprises that had released the third quarter report last night, 11 saw their net profits rise, accounting for 78.6%. Among them, the growth rates of Sihai Technology (000611. SZ), Sanmao Paishen (000779. SZ), Jinlong Shares (000712. SZ) and Shandong Ruyi (002193. SZ) reached 836.74%, 313.71%, 184.15% and 112.79% respectively.

Compared with the good situation in the textile sector, the performance of garment enterprises is somewhat bleak, and 6 of the 8 garment enterprises that issued the third quarter report reported losses. Among them, Meibang Clothes & Accessories (002269. SZ) After the half yearly reported profit in 2013 dropped by 50%, the net profit in the third quarter continued to decline by 49.93%. Seven Wolves (002029. SZ) also experienced the first decline in net profit in a single quarter since 2006. The leisure clothing brand Kanudi Road (002656. SZ), which was highly favored by the market after its listing in 2012 and had a net profit growth of more than 60%, also dropped by 29.08%, showing the slowdown trend of the industry.

Wang Qianjin, chief editor of the First Textile Network, told reporters that from the third quarter of this year's report, the upstream manufacturing industry was significantly better than the downstream clothing enterprises, and there was a serious differentiation between the upstream and downstream, which "is closely related to the whole market".

Take cotton textile enterprises such as Xinye Textile (002087. SZ) and Lutai A (000726. SZ) as examples, the growth of their performance is not unrelated to the decline of raw material prices.

With the promotion of the open cotton purchase and storage policy, the domestic cotton price has been stabilized to a certain extent, and the price difference with the international cotton price has also decreased from 5000~6000 yuan last year to about 3000 yuan this year. The situation of chemical fiber raw materials is similar to this.

However, for clothing enterprises, they were still in the stage of destocking caused by rapid expansion and sluggish domestic demand for a long time before, and the inventory clearing mainly by discount would cause great harm to the profitability of enterprises.

Wang Qianjin said that the cycle of de stocking for garment enterprises is generally 1 to 2 years, and the current inventory clearing of domestic garment enterprises is approaching the end. However, he also said frankly that although the overall inventory has decreased, the domestic demand market is still in a downturn, and the most fundamental demand problem has not been solved.

"The domestic demand market is at a low point this year, and may recover at the end of the first and second quarters next year, but I'm afraid it will be difficult to recover to the high growth stage of the previous two years." Wang Qianjin said.

It is worth noting that the growth of some market segments has brought a bright color to the clothing market with low morale, such as outdoor brand Pathfinder (300005. SZ).

In the third quarter of 2013, Toread continued to maintain a rapid growth, with its revenue increasing by 30.34% and net profit increasing by 103.73%.

In addition, clothing brands are also actively transforming. Not only do most enterprises clearly put forward the strategic goal of "transforming to retailers" and optimize the supply chain, but also Meibang Garments has begun to test the O2O model to try to achieve online and offline business integration.

Wang Qianjin said that the future development trend of the textile and clothing industry is that the gap between different brands and sub industries will become larger and larger.

"In the past, enterprises used extensive development methods such as the number of stores and factory scale, but in the future, they will still have to compete with soft power such as design level and supply chain management, and the whole clothing industry will face a round of reshuffle," said Wang Qianjin.