Crazy Shop Opens Up Profits, Slump, And Fashion In The Middle And Lower Reaches Of Women's Clothing Industry.

In January 24, 2019, the daily fashion (603196) released the 2018 annual performance pre cut notice. In the announcement, the daily fashion shows that business revenue increased by about 6% over the same period in 2018, of which the core brand "broadcast broadcasting" business income increased by about 7% over the same period. However, net profit has dropped sharply, and is expected to decrease from 41 million 500 thousand yuan to 54 million yuan, down 50% to 65% compared with the same period last year.

The reason for the sharp decline in net profit is due to channel investment, R & D investment and new brand development. In 2018, there were 117 new fashion shops and two new products. However, the crazy expansion did not bring a significant increase in revenue, with a growth rate of only 6%, which is at a lower level in the women's clothing industry.

　　 Crazy shop opens up profits

In 2018, the daily fashion entered the crazy shop opening rhythm, opened 117 stores directly. It is reported that by the end of December 31, 2017, the number of shops with direct fashion shops was only 247.

But these new stores did not have much positive impact on the revenue of the fashion day. By the third quarter of 2018, the growth rate of the daily fashion revenue was 10.67%, and only 6% by the end of the year. And the negative effects are beginning to appear, which engulfed corporate profits.

In the performance forecast, the daily fashion shows that there are 117 new outlets in 2018, and the new shops need a period of training, while the store related shopping expenses, decoration costs, personnel salaries and so on all need to be paid as usual, resulting in an increase in the company's sales expenses, representing an increase of about 22.5% over the same period last year.

The sharp increase in new shops has resulted in a sharp reduction in net profit. The number of profits attributable to shareholders of listed companies is expected to decrease from 41 million 500 thousand yuan to 54 million yuan in 2018, compared with a decrease of 50% to 65% over the same period.

In 2019, it will further increase the number of self run stores, but will slow down the opening shop plan. In the fashion of the day, the focus will be on improving store efficiency.

　 Growth rate industry bottom

The sharp drop in profits is only one of the problems faced by the fashion of the day. Another serious problem is that its revenue growth rate is at the downstream level of the industry.

In view of the fact that most of the listed companies have not published the 2018 annual report or performance notice, we have selected the third quarter quarterly report of the listed women's clothing brand, and compared the growth rate of revenue and the growth rate of net profit.

(Jiangnan Buyi data for June 30, 2017 to June 20, 2018)

In terms of revenue growth rate, the daily fashion is 10.67% in the industry in the second place, only higher than La Natsu Bell's -0.5%; and net profit growth rate, -53.64% is ranked first in the industry.

It is worth noting that in the field of women's clothing, the daily fashion is not the leading brand of the market, but in terms of revenue, it is at a lower level in the industry. In 2017, the daily fashion sales volume was 1 billion 70 million yuan, compared with Vigna S's 2 billion 564 million yuan, Taiping bird 3 billion 940 million yuan (women's wear part), Langer's share of 2 billion 353 million 900 thousand yuan, and urban beauty 4 billion 542 million yuan, which are several times the day's fashion.

A bigger brand has achieved a higher growth rate, which may mean a decrease in the market share of the fashion market, and a decrease in the market share means that consumers are away from the fashion of the day, which is not good for the fashion of the day.

At present, the loss of inventory and asset impairment has been increasing sharply. The data show that the balance of the day's fashion inventory increased from 280 million yuan at the end of 2017 to 360 million yuan at the end of the three quarter of 2018, the ratio of total assets was 29.46%, the loss of assets impairment was 47 million 627 thousand and 500 yuan, and the sum increased by 28 million 463 thousand and 100 yuan over the same period last year, up 67.33% over the same period last year.

Perhaps the fashion of the day is crazy. Under the crazy shop mode, the growth rate of the daily fashion is at the bottom of the industry; if there are no new 117 Direct stores, will the growth rate of the daily fashion growth rate be negative in 2018? Author: Gao Hui