US Bond Cash Flow Worsens &Nbsp; High Inventory Dilemma Remains To Be Solved.

In 3 and April this year American Apparel (002269, SZ) life is not easy. In the past two months, the US state clothing needs to pay nearly 1 billion 100 million of the financing, which will bring heavy pressure on its cash flow once again, and the high inventory problem that really affects the cash flow is exposed again. In the three quarter of last year, the goods in the three quarter were nearly 3 billion yuan, up 300% compared with the 700 million yuan inventory in the first quarter of 2010.

Public information shows that the United States Clothes & Accessories In 2011, the second issue of short-term financing certificates will be issued in April 28th, which will expire in April 28th. This also means that the US bond clothing will repay more than 500 million yuan in the end of this month after the repayment of the principal and interest of 526 million yuan in March.

Deterioration of cash flow

The announcement shows that in March 8th this year, the United States and costumes just completed a short-term cash payment, repayment of principal 500 million yuan and interest 26 million yuan. However, after the repayment of the financing, the United States and costumes also need to repay another 500 million yuan of short-term financing, and the final payment period of the financing is the 28 day of this month.

The two short-term financing bonds were issued in 2011. The total amount of financing was 1 billion yuan, and the current interest rates were 5.2% and 5.28% respectively. That is to say, in only two months in March and April, the United States must pay more than 1 billion yuan for costumes.

The results showed that the operating income of 2011 was 9 billion 940 million yuan, up 33% from the same period last year, and net profit was 1 billion 210 million yuan, up 60% compared to the same period last year. Under the rapid growth of performance, the cash flow of American Apparel has been deteriorating.

Starting in the two quarter of 2010, the net cash flow generated by the US bond business began to run out of money for a long time, and it was -5.55 billion in the two quarter of last year. Correspondingly, the liabilities of Smith Barney clothing remain high. In the third quarter of 2011, the company's liabilities totaled 5 billion 472 million yuan, an increase of 12% over the same period last year, and its liabilities reached an all-time high.

Xu Yan, an analyst at CICC, said Clothes & Accessories The debt is mostly concentrated in the short term, and the turnover pressure is indeed large.

Over 50% of net assets inventory is up to

"Mei Bang dress" cash The real reason for the worsening of the flow lies in the high inventory problem of the United States. Shanghai is seeing brand Cui Hongbo, chief executive of the consultancy, pointed out that in the first quarter of 2010, the inventory of American barrack clothing was only 7 hundred million, but in a single year, the inventory reached 3 billion 160 million yuan in the first quarter of 2011, rising by more than 300%.

The research data of Shenyin and Wanguo show that the stock of American bond has been reduced to 2 billion 500 million yuan by the end of 2011, while that of Smith Barney in the 3 quarter of 2011 is 2 billion 982 million. This means that the stock of Smith Barney's last year's digestion in the fourth quarter was about 5 hundred million. In 2011, the United States began to launch 300 discount stores to digest inventory in the two or three tier cities. In order to ensure that the inventory style can be successfully digested, the discount rate of inventory is about 5-5.5.

Judging from the inventory of last quarter digestibility, Shenyang Wanguo analysis estimated that the new spring and summer festival in 2012 was about 250 million yuan, 700 million yuan in autumn and winter in 2011, 8 to 900 million yuan in spring and summer in 2011, 5 to 600 million in 2010 and autumn, and the earlier one in the rest. An anonymous analyst pointed out that the spring and summer 2012 and the autumn and winter 2011 were normal stock. The remaining 1 billion 500 million yuan in the warehouse was devalued every day. The results show that in 2011, the net assets of Smith Barney were 4 billion 130 million yuan, while that of 1 billion 500 million yuan in the past quarter accounted for 40% of its net assets.

From the data of inventory turnover days, it is quite serious that it is 243 days in the two quarter of last year, which means that the inventory will take 8 months to digest. This will make the United States in an awkward position. Data show that the stock turnover days of Smith Barney clothing to the first three quarters of 2011 were 228.74 days, 243.31 days and 200.73 days respectively. In the third quarter of 2011, which was the fastest turnover, it was 108 days higher than the inventory turnover date in the three quarter of 2010. That is, at least 4 months for inventory turnover. In 2010, the average turnover days in the four quarter were 82.25 days, 110.68 days, 135.17 days and 151.68 days respectively.