New Report Shows That Fast Fashion Brand Profit Growth Is Facing Bottlenecks.

According to the latest news of the latest fashion brands, the profits of the fast fashion brands are still increasing in the recent year, but the growth rate is not large enough to meet the bottleneck.

In April 7th, Uniqlo The parent company Xun marketing group released its first half fiscal year ending 2016 in February 29, 2016. The data are summarized as follows:

In the first half of 1 and 2016, the comprehensive revenue of XXX group reached 10116 billion yen (60 billion 200 million yuan), an increase of 6.5% over the same period last year, and net profit of 99 billion 300 million yen (5 billion 900 million yuan), a decrease of 33.8% over the same period last year.

2, Japanese UNIQLO performed poorly in the first half of the year, and both revenue and net profit declined. Sales in November and December were not ideal, and net sales fell by 1.9%, leading to further discount sales promotion in January and February. The gross margin was 3.5% lower than the same period last year.

3, overseas UNIQLO performance in the first half of the year is generally in line with expectations, revenue growth, but the profit is lower than expected. Among them, profits in the Greater China and South Korea declined, while operating losses in the US expanded further. In addition, the performance of Southeast Asia, Oceania and Europe generally met expectations, with double growth in income and net profit.

4, the global brand business, revenue and net profit double growth, of which GU (super excellent) business performance is the strongest.

5, by the end of February 2016, Japan The total number of outlets in UNIQLO has decreased from 9 to 805, while the total number of employees in special stores has increased from 11 to 39, of which 10 have been converted from direct stores.

6, as of the end of February 2016, the total number of overseas UNIQLO stores increased by 174 to 890 compared to the same period last year, and the first UNIQLO store opened in Belgium in October 2015. London's 311 Oxford Street flagship store was renovated and renovated in March 2016.

7. According to the financial data in the first half of the year, the group downgraded the annual performance expectations for the 2016 fiscal year, expecting that the combined income will reach 18000 billion yen, an increase of 7% over the previous year, and net profit will reach 120 billion yen, down 27% from the previous year.

From the above we can see that despite the fact that UNIQLO maintained a good growth momentum, sales in the main areas of Japan and overseas were not satisfactory, resulting in poor performance of UNIQLO in the first half of fiscal year 2016. Not long ago, H&M and ZARA, the biggest rival of UNIQLO, reported their earnings. Ryui Masa, the head of the fast selling group, said that it would become the world's largest clothing retailer in 2020. It was not known whether the target could be achieved in four years.

H&M earnings data

Recently, H&M, the world's second largest clothing retailer, released its Q1 2016 financial year report (December 1, 2015 to February 29, 2016). Its net profit was 2 billion 550 million kronor (about 313 million US dollars), down 30% compared with 3 billion 510 million Swedish kronor (430 million US dollars) in the same period last year. In addition, H&M's pre tax monthly sales increased by 10%, 7% and 10% respectively over the same period last year, the lowest in nearly three years.

ZARA earnings data

In March 9th, the Inidtex group of ZARA parent company released the 2015 annual earnings report ending January 31, 2016 (January 31st February 1, 2015 -2016). The main data are as follows:

In the 1 and 2015 fiscal year, Inditex group's net sales reached 20 billion 900 million euros, an increase of 15.4% over the same period last year; net profit of 2 billion 880 million euros, an increase of 15% over the previous year; EBITDA (profit before depreciation and amortization) was 4 billion 770 million euro, up 15% over the same period last year.

In the 2 and 2015 fiscal year, Inditex group added 330 stores in 56 markets around the world. Currently, the total number of stores is 7013, covering 88 markets worldwide.

In the 3 and 2015 fiscal year, the Inditex group's total investment amounted to 1 billion 520 million euros, which was mainly used for global expansion.

In the 4 and 2015 fiscal year, the group launched an online sales platform in Hongkong, Taiwan, Macao and Australia. It has been sold online in 29 markets worldwide.

5 and 2015 fiscal year, ZARA There are 77 new stores in the world, and the total number is now 2162.