Seven Wolves Released 2013 Profit Net Profit For The First Time In 10 Years

< p > in the evening of April 2nd, < a href= "//www.sjfzxm.com/news/index_c.asp" > seven wolves < /a > also issued 2013 earnings report. The company's performance declined for the first time in ten years since its listing, and its revenue and net profit decreased by over 20%, and the sales of the five categories of products all increased negatively. Over the past year, the company has experienced the throes of channel adjustment, closing nearly 500 stores in one year. < /p >
< p > < strong > net profit has dropped for the first time in 10 years, other a href= "//www.sjfzxm.com/news/index_c.asp" > garment enterprise < /a > < /strong > /p >
< p > seven wolves need to prepare for the winter. Over the past ten years, the net profit of the leading men's brand listed company has increased year by year, but this trend has turned a turn last year. < /p >
< p > yesterday evening, the seven wolves released the 2013 earnings report. The company's performance declined for the first time in ten years, and its revenue and net profit fell by over 20%. The sales of the five categories of products all increased negatively. Over the past year, the company has experienced the throes of channel adjustment, closing nearly 500 stores in one year. < /p >
< p > < strong > adjustment pain > /strong > /p >
< p > seven wolves failed to escape the overall recession of the garment industry. < /p >
< p > last year, the total revenue of the seven wolves was 2 billion 773 million yuan, down 20.23% from 2012. The net profit of shareholders belonging to the listed company was 379 million yuan, down 32.44% from the previous year. The main business revenue was 2 billion 630 million yuan, down 20.58% compared to the same period last year. The company said that the impact of terminal weakness since 2012 on the company's performance began to focus in 2013. < /p >
< p > the net cash flow generated by the company's operating activities was 683 million, an increase of 55.92% over the same period of 2013 due to the recovery of more than a href= "//www.sjfzxm.com/news/index_c.asp", sales refund < /a > and tax and fee reduction. < /p >
< p > 2011 and 2012 were two years of expansion of the seven wolves. In 2011, there were 3976 terminal channels in the company. The weakness of domestic demand appearing in 2012 failed to stop seven wolves, and its terminal channels increased by 31. < /p >
< p > but by 2013, the bitter fruit of expansion began to highlight. The company's inventory goods reached 7 million 461 thousand and 100, an increase of 15.24% over 2012, while the share of inventory accounts for 0.61% of the total assets of the company, but the total value of inventory increased from 566 million in 2012 to 657 million yuan. < /p >
< p > in the face of declining performance, the seven wolves closed their stores for the first time in three years. As of the end of the reporting period, the company had 3502 terminal channels and closed 505 stores in one year. At the same time, we should speed up the construction of factory shops and discount stores, and open 7 new factory shops to provide support for the rapid clearance of channel inventory. < /p >
< p > < strong > transformation is not easy < /strong > < /p >.
< p > in a sense, the seven wolves are only following the footsteps of other brand clothing companies. < /p >
< p > after several years of rapid expansion, the performance of the apparel industry is just like that of Domino. From leisure, sports to men's wear brand, Waterloo has successively encountered. In 2013, the profits of 5 companies such as card slave Road, news bird, Hinur, Georges white and Busen declined. < /p >
< p > although the transformation has been brought into the field of vision, the road of the seven wolves is not smooth. < /p >
< p > 2010, the seven wolves moved from wholesale to retail, but in 2012 and 2013, there were no specific numbers of franchise stores and direct stores. Clothing industry expert Cheng Weixiong believes that this means that seven wolves have encountered difficulties in expanding the direct channel. "Most of Fujian menswear brands are dominated by distributors, dealers only focus on the sale of current goods, and enterprises will start from long-term interests." He said that the interests of both sides are not on the same track, and that the transformation process will be a game between enterprises and distributors. < /p >
< p > seven wolves are also looking for online opportunities. In August 2013, seven wolves set up a wholly owned subsidiary, Xiamen seven wolves Agel Ecommerce Ltd, to enter the online business. The company gained a net profit of 1 million 836 thousand and 100 yuan in the next five months, but this only affects 0.48% of the overall performance. During the reporting period, the business revenue of the company's e-commerce business was about 290 million yuan, an increase of more than 60% over the same period last year. Seven wolves admits that the current network channel is still mainly sold in off season inventory, with only a small number of networks dedicated to products. < /p >
In 2012, the "P" seven wolf increased its real estate investment in 2013. At the end of 2013, seven wolves invested in real estate 844 million yuan, slightly lower than the 847 million yuan in 2012, and the proportion of total assets decreased by 2.98%. < /p >
< p > Cheng Weixiong told reporters that such a decline is an inevitable situation in a sense. The original mode of the whole industry is too simple, and the homogenization of products, promotion and positioning is serious. The so-called differentiation is just a brand difference. In the face of the depressed market, men's clothing brand has launched a wave of Customs shops, and has proposed to change brand positioning and realize differentiation. However, Cheng Weixiong predicted that in 2014, the men's clothing industry will not be out of the woods in view of the lagging nature of the market reaction. < /p >