Smith Barney Fell Into A Predicament 2019 Loss In The First Half Of 138 Million

From the household to the nobody, the Metersbonwe "not taking the unusual road" again turned from profit to loss.

According to the fashion business news, Metersbonwe, a domestic apparel group, released its first half performance report on Friday last Friday. Its revenue fell 31.47% to 2 billion 699 million yuan, and net loss amounted to 138 million yuan, compared with a net profit of 53 million 110 thousand yuan a year earlier.

The main business revenue of American bond is from wholesale and retail industry, accounting for 98.93%, which is 31.58% lower than that of the same period last year. According to the product division, men's clothing accounted for 55.32%, a decrease of 30.85% compared with the same period a year earlier, and women's clothing accounted for 35.29%, a decrease of 34.35% compared with the same period a year earlier, while other products and businesses accounted for 9.38%. According to the regional division, the eastern region has significantly more business income than the other three districts, accounting for 57.48%, while the western, southern and northern regions account for 13.55%, 13.21% and 15.76% respectively.

The report said that the company further optimize the channel structure, take the initiative to close down and adjust inefficient Direct stores, which has a certain impact on the company's short-term performance. At the same time, due to the factors of commodity delivery in the first half of the year, the impact of the new product listing rhythm in spring and summer in 2019 led to the short term market failure to meet the market demand in time.

Failure to meet consumer demand in time is the main reason for the decline in the first half of American Apparel.

However, American Apparel emphasizes that at present, the company has attached great importance to the delivery management of goods, and the relevant issues have been properly resolved to ensure the smooth progress of the company's listing of goods in the autumn and winter. It is worth noting that the brand performance of the former rival, Hai Lan home, Semir clothing and Taiping bird, is still growing steadily.

Founded in 1995, the United States has made its debut in the fashion of "celebrity endorser + CCTV advertising + agent sales channels". According to Euromonitor statistics, in 2006, the United States has the highest share of apparel retailing in the domestic casual wear retail industry, ranking the first among the major casual wear brands in the domestic market. In 2008, the US bond market in Shenzhen realized the 33% coverage of the 66% and three tier cities in the 100% and second tier cities of the first tier cities, making it impossible for many clothing brands to catch up. It also avoided the risk by relying on a huge marketing network during the financial crisis.

But from 2011 to 2012, high inventory and weak retail sales hit China's apparel industry. The rapid rise of Taobao led business led to a huge impact on offline stores. At the same time, domestic clothing brands also faced challenges from foreign fast fashion giants such as Zara, H&M and UNIQLO, which poured into the Chinese market. In 2012, the first time in Waterloo, the net profit fell 42% to 850 million yuan, and faced with a bad situation such as terminal pressure, extensive management, and the project being unable to make ends meet. In 2012, the United States began to close its stores. In 2012, the total number of stores was 5220, with only about 3900 left at the end of 2016.

In order to transform, Zhou Chengjian, the founder of the group, has considered introducing the Zara mode and is determined to create "China Version Zara". However, due to the difference in supply chain, the plan failed. In addition, the United States has tried to try the water and electricity suppliers, and set up online stores in Taobao, launched the electronic business platform, "state purchase network", and tried to start the O2O strategy. However, due to the subsequent supply chain and logistics problems, the transformation plan failed. After 2010, the state owned apparel inventory problem was serious, and the stock assets accounted for more than 20%. After that, Mei Bang clothing could only rely on discount sales to reduce inventory.

In 2016, Zhou Chengjian resigned from the post of chairman of the board. In 2017, his daughter Hu Jiajia took over the group's re transformation after taking over as chairman and CEO of the group. In order to make the group better youthful, the board of directors after the reorganization was in addition to three people for "70 after", and the remaining 7 were "post-80s". Zhou Chengjian's 19 year old son, Hu Zhoubin, served as assistant to the president of group dress, responsible for Internet and innovation business.

Since then, the United States has begun to regain the advantages of offline channels, and based on consolidating the business of the second tier cities, it has cast its eyes on the three or four tier cities with greater potential. In addition, the group rapidly upgraded the brand strategy of the products, subdividing the main brands into five styles: MTEE Street interest, ASELF Sen, Novachic city light business, HYSTYL trend and NEWear leisure style. It shows the image of the store or style store, and fully meets the diversified needs of consumers under the upgrading of consumption. It also enriches its brand matrix. At present, it has five main brands of Metersbonwe, ME&CITY, AMPM, MooMoo and CH'IN, and operates B2C B2C e-commerce platform.

After a series of transformation failures, the United States seems to have found a suitable way to transform and restructure, and in 2018, it succeeded in turning losses into profits. Group's operating income rose 18.42% to 7 billion 664 million yuan in 2018, operating profit rose 188.46% to 56 million 400 thousand yuan, and net profit increased 114% to 42 million 908 thousand and 600 yuan over the same period last year.

Although the performance of the first half of the year is once again in a predicament, some analysts say that the competition in the clothing industry is now entering the second half. Although the United States and the United States have the disadvantage, they are still the head enterprises. If we can rediscover the performance growth pattern in the rapidly changing market and let the new young people accept it, we will seize the opportunity and turn the profit into a deficit.

But nowadays young consumers are becoming more and more smart, and the demand for clothing and shopping are declining. La Natsu Bell, another domestic clothing giant, is also facing difficulties in transformation. After the first loss in 2018, La Natsu Bell expects a huge loss of 500 million in the first half of this year. By the end of June 2019, the number of outlets under the domestic line had been reduced by more than 2400 from the end of 2018. Based on this calculation, the number of stores closed by La Natsu Bell exceeded 13 in the first half of this year.

For the second half of 2019, Smith Barney said it would be cautious and optimistic. It is expected that the listing of goods will proceed smoothly in accordance with the plan. Meanwhile, it will continue to improve the competitiveness of commodities and the ability to manage the dynamic sales plan.

As of Tuesday's end, the price of Smith bond rose to 2.25 yuan after falling 2.58% last Friday, with a market capitalization of about 5 billion 600 million yuan.