In The First Half Of The Year, Li Bang Lost 200 Million HK Dollars In Men'S Performance Or Overall Downturn?

In the mid 2015, after the loss of profits, the high-end of Hongkong Feng Shi Group

Retail group

The performance of stock limited company (0891.HK) is still declining.

Later in August 9th, Li announced the mid term results for the 6 months ended 2016.

What surprises the market is that in the mid-term of last year's loss of HK $47 million, its loss has reached HK $200 million this year.

One day before Li Bang announced its performance, another man's suit.

01234.HK also took the lead in releasing the corresponding data. Similarly, its operation is not beautiful.

Up to now, most of the men's clothing brands have not yet released interim results, but according to the previous quarter's situation, revenue and profit declines, including closing stores, are still common.

According to the insiders, at present, the field of men's wear is still more serious. It is hard to know whether the industry can see the bottom this year.

Loss of HK $200 million

As a representative of high-end men's wear, Li Bang's performance has been declining for several years, and the loss began in the middle of 2015.

The latest performance report shows that in the first half of this year, its actual income was HK $891 million, down 11.49% compared to the same period last year. Net profit of HK $-2.00 billion, the loss increased by more than three times.

In view of the decrease in income, the company says it is affected by the low consumption environment in the Greater China.

From the market point of view, it achieved retail sales of HK $258 million in China's Hongkong and Macao regions, down 13% from the same period, while the same store sales also fell by 11.9%.

China's mainland market, which accounts for more than 40% of its revenue, is also not beautiful: retail sales have fallen by 23.1% over the same period.

Last year, it closed 50 shops in the mainland of China due to its low consumption environment, which further closed 19 stores in the first half of this year.

Shops closed within the planned period were down 16.3% in the same store.

In addition, the other market sales of Li Bang have declined.

Because it has not been able to reverse the sluggish business situation, in the early June, it served in the brand of Bo Bailey, Zegna and other brands, and its executive director, Richard Samuel Cohen, executive director of the Li Bang executive office, who had rich experience in men's clothing business, was "downcast" after two years in office. The successor was Jeremy Paul Egerton Hobbins, 69 years old, who joined Feng Group in 1999.

In the interim report, the new chief executive, Hobbins, revealed that Li Bang has identified three major short-term goals to improve group performance: continue to optimize supply chain, ensure that shops provide the best quality products, and reorganize the team to ensure clear responsibilities and responsibilities, and embark on a large-scale throttling plan.

According to the reporter, in the first half of this year, Li Bang has further integrated the store and reduced the number of shops from 349 at the end of 2015 to 333.

Li Bang has also implemented a large-scale internal reorganization plan.

Due to the ongoing restructuring, including the changes in Hongkong factories, the total number of employees currently owned has been reduced from 2738 at the end of 2015 to 2665.

In addition, it has substantially reduced the number of senior executives and consultants, reduced expenditure and determined clear accountability and reporting framework.

All the measures are aimed at one goal: streamlining business.

"Despite the rapid improvement of the group's performance, we also understand that the overall sales environment in the short and medium term will remain challenging.

Unless the market improves significantly, there will be no significant improvement in the financial performance of the group.

Hobbins points out.

Industry consolidation will continue

In August 8th, Li Lang, also listed on the Hong Kong stock market, announced the interim report card.

In the first half of this year, its revenue was 1 billion 174 million yuan, down 1.2% compared to the same period last year. Net profit was 266 million yuan, down 3.9% compared with the same period last year.

As of the end of June, the number of shops was 2935, 50 fewer than the beginning of the year.

The number of retail outlets of the main brand "LILANZ" decreased by 10, while the number of "L2" retail outlets decreased by 40.

At present, the leading industry of seven wolves, nine herd kings, and good news birds has not yet announced the specific operating conditions.

However, according to its first quarter data released, the net profit is generally not beautiful.

The first quarter performance report of the seven wolves showed that its net profit during the period was 64 million yuan, down 5.18% compared to the same period in 2016.

The seven wolves expect a net profit margin of -20%-0% in the first half of this year. The reason is that 2016 year old orders will be reduced by customer orders.

From the store's view, contraction has also become the same keynote.

In the first quarter, YOUNGOR closed 35 stores, while nine Mu Wang was 26.

In addition, a large number of stores have failed to shut down several stores because of the cancellation of the mall or poor management.

According to the statistics of the China National Business Information Center, in 2015 1-12, the sales volume of clothing commodities of hundreds of key large enterprises decreased by 0.3% compared with the same period last year. The negative growth occurred for the first time since the two digit growth rate in 2013 years, of which men's clothing decreased by 1.2% compared with the same period last year.

Ma Gang, an independent critic of the footwear industry, told reporters earlier that 2015 was the most difficult year for the textile industry.

Since 2015, although clothing consumption has basically continued the weak trend in 2014, the growth rate has stabilized.

Although clothing consumption has not recovered, subdivision has shown signs of recovery, such as women's underwear and baby industry are still at a relatively fast growth stage, but high-end men and women's clothing is at a low ebb and needs to be revived.

Will the downturn in men's clothing industry see the bottom this year? Everything is still unknown.

According to Li Lang, sales of Chinese men's wear industry went bad again in the second quarter of 2016.

6, July rainstorm and flood spread to a wide range of provinces, together with last autumn and winter retail channel inventory accumulation, will cause pressure on sales prices, it is expected that in the second half of 2016, the industry will not improve significantly, industry integration will continue.