Recently, A-share listed apparel companies Septwolves and Jiumu Wang released their first-half performance reports. The company’s revenue increased by single digits, but at the same time, marketing expenses, operating costs, etc. also increased year-on-year. rise. Facing the complex industry situation, most domestic apparel companies are still wandering in the process of transformation and upgrading. There is still a lot of room for improvement in terms of brand team, retail channels, marketing costs and other aspects.
On August 22, Septwolves released its 2019 semi-annual report. In the first half of 2019, it achieved operating income of 1.555 billion yuan, an increase of 6.55% compared with the same period last year. The net profit attributable to shareholders of the listed company was 123 million yuan, a year-on-year decrease of 8.42%, and the non-net profit after deducting it was 68.1398 million yuan, a year-on-year decrease of 15.33%.
On August 21, Jiumuwang disclosed its 2019 semi-annual report. The company’s revenue in the first half of the year was 1.353 billion yuan, a year-on-year increase of 7.33%; net profit was 325 million yuan, a year-on-year increase of 23.69%. .
Industry analysts said that currently, clothing companies are facing risks such as intensified competition in market segments and a decline in the industry’s dominant position.
Septwolves pointed out in the report that brand extension is limited and competition in market segments may lead to a reduction in the company’s market share. The relevant person in charge of Septwolves stated that they will continue to consolidate existing brand operations, cultivate new brands, increase external acquisitions, expand the company’s brand coverage of consumer groups, and increase market share.
Jiumuwang has also implemented a multi-brand development strategy since 2016, creating a “precision quality platform” and “fashion quality” through independent operations, direct investment and cultivation, acquisitions and mergers. There are three major clothing platforms: “Platform” and “Fashion Platform”.
Recently, domestic clothing brands have entered the stage of mid-term financial report disclosure. Many brands have released their first-half profit. Except for a few brands, many companies are still in the process of transformation. For example, on August 19, Peacebird released its semi-annual report. In the first half of the year, it achieved operating income of 3.120 billion yuan and net profit attributable to shareholders of listed companies of 132 million yuan, a decrease of 33.06% compared with the same period last year. Industry insiders believe that at present, transformation and upgrading will still be the main trend for domestic clothing brands in the next few years.
