China's Largest Women's Clothing Group: 2400 Stores In Half A Year, A Huge Loss Of About 500 Million!

In front of making money, there is no sense of risk. We are desperately trying to expand the capacity of the new line, and we are afraid of losing the opportunity to steal money. However, the market rule tells us that the supplier market, which is formed without strong demand, is a pseudo demand. After the bubble, it left behind the situation that it did not lead to the failure to start normally, but also caused the market confusion and price confusion due to the low price of the market everywhere.

After entering the "deep pit", the industry is looking forward to the season of inventory clearing. Let's take a look at the embarrassment of the terminal clothing market. It will not come!

China's largest women's wear group: Half a year close shop 2400, a huge loss of about 500 million!

La Natsu Bell Clothing Co., Ltd. (603157.SS) (6116.HK) released the surplus police on Tuesday, which is expected to be a huge loss of 4.4-5.4 billion in the first half of the year. The loss after deduction is expected to further increase to 4.9-5.9 billion yuan, while the net profit in the middle of 2018 will be 235 million 800 thousand yuan.

La Natsu Bell blamed the loss on the dual impact of the macro environment and its own optimization channels. In the first half of 2019, the company's operating income dropped by more than 20% over the same period. At the same time, the company accelerated the sale of over season products, resulting in a decline in the average gross profit margin of commodities. In the first half of the year, the decrease in corporate expenses failed to offset the decline in gross margin.

In addition, due to changes in the external financing environment, the company continued to return bank loans during the reporting period, which had a negative impact on the company's purchase in spring and summer in 2019, and so on.

Shanghai apparel giant has started selling assets this year, including 275 million yuan clearance, one holding Sun company, Tianjin star Kuang and 200 million yuan transfer to Hangzhou's 54.05% stake in Agel Ecommerce Ltd.

On the basis of closing 1616 stores in the first quarter, the company further pushed the total number of stores to 2400 in the first half, a decrease of about 26% from 9269 at the end of last year.

In a quarterly report, in addition to the sports industry, China's major apparel enterprises are showing a downward trend. 002269.SZ has released surplus police in the middle of the month, revising the first half of the year, expecting a medium-term loss of 1.0-1.5 billion yuan, while the previous quarterly loss is expected to be 0-5000 yuan.

On the same day, the Nanjing shoe company also issued an earnings police. It expects the medium-term loss to increase from less than 15 million yuan last year to 5000-54000 yuan.

Statistics from the Bureau of statistics showed that sales of textile and garment enterprises above the limit increased by only 3% in the first half of the year, compared with 620 basis points in 2018. With the advent of the performance period, most garment enterprises are expected to gain profits or even lose money.

Are you still waiting for the busy season that cleared up your inventory? Don't wait!

The textile industry is experiencing an unprecedented cold winter, which is much more serious than the Asian financial turmoil of 97 years, 03 years SARS, the 08 year financial crisis and the 11 year cotton price slump. The market demand is extremely sluggish and the whole industry is sluggish.

Since China joined the WTO in 2001, the textile industry has developed rapidly, and exports have surged every year. The spinning industry has been expanding continuously. Up to now, it should be far more than ten thousand spindles. It may be China's textile industry. In the past, the two obvious seasons of our textile industry, especially the peak season after the start of the year, can basically run away all the stock in the warehouse, so that more textile factory owners will be more enthusiastic in the expansion work.

It's a pity that such a good time has passed.

Before and after 2015, the total export volume of China's textile industry began to stagnate.

In the 15 years after China's entry into WTO, WTO has already provided us with the potential of sales. All of these will bring us into full play. In the future, China's textile industry will not grow crazily for 15 years.

It is possible that in the past 15 years, our Chinese textile industry has been able to capture the textile market that the whole world can conquer by means of WTO's trading platform. It is certainly not a question of quality and price.

Other industries do not know that China's textile industry will definitely take 2015 as a watershed, divided into the first 15 years of joining the WTO and two years after joining WTO15. Therefore, the increase of spinning production in recent years is actually redundant production capacity.

Experts should obviously feel that the peak season of textile industry is not so great in the past few years.

Yes, and it will never be seen again.

Because we are already the largest textile producing country in the world, our competitors have been beaten down by us. Now our main rivals are ourselves.

And our own excess capacity will inevitably lead to internal killing, survival of the fittest and elimination of the weak.

Who are the weak?

I guess our boss said we should stockpile, leverage and go behind production capacity. And large inventory, Big levers, backward production capacity, and these are definitely the business models of the weak. If they do not change in the future, they will be eliminated by the market.

No matter how the quality of customer demand, Mongolian production, in the warehouse, as long as the peak season, the warehouse together with the rats to load the car to the producers, I estimate that in the era of WTO15 accession, there is no value.

Wash and sleep. There will not be a busy season in the future. Because the textile market of the earth is no longer possible to provide such a huge volume of textile production in China to a fast and heavy season. No matter how many and urgent the customers want, the Chinese textile industry has been able to accomplish it easily. What other customers rush for the season?