How To Deal With Inventory Crisis By Lining And 31St?

World clothing shoes and hats net understand: whether in the earnings report, or

At the scene, "multi brand" is still one of Anta's most commonly mentioned words.

In the first half of 2017, FILA's revenue accounted for nearly 30% of Anta's total revenue. That is to say, FILA's revenue in the first half of 2017 was 2 billion, and its volume continued to approach XTEP (2 billion 311 million) and 31st degree (2 billion 798 million).

During the reporting period, FILA's water consumption increased by more than 50%.

Previously, FILA sales in 2016 were around 3 billion 700 million.

It can be said that the growth momentum of FILA is still undiminished.

If the growth rate of 50% can be maintained throughout 2017, FILA will reach 5 billion yuan this year.

In the first half of the year, Lining's main brand accounted for 99.2% of the sales revenue. Its brands including lotto, Kasen (Kason) and Aigle were not able to resist the banner of many brands.

The high-end outdoor brand One Way of 361 degrees has only 51 stores remaining by the end of 6 this year, and its annual report has not introduced specific revenue data.

Judging from the current market competition, Anta is still thriving in many brand areas.

Now Anta's challenge is to create second successful sub brands to prove that its multi brand strategy is a real success model, not FILA's accidental success.

Strictly speaking, this year is only the first year that Anta will truly test the "multi brand mode". Desanto, who opened the first store in August last year, has 21 stores by the end of June, an increase of 15 over the end of last year.

With the high-end outdoor brand in Japan, Anta has perfected its own multi brand matrix.

Anta has not announced another brand Spandi's information. Another brand Kolon is still waiting for relevant approval.

In the second half of the year, the layout and performance of Desanto, who plans to add at least 29 stores, is worth noting.

In the next few years, besides FILA, the development of Desanto, Spandi and Kolon will have a significant impact on the future direction of Anta.

On the opponent side, Lining holds the exclusive right to operate the US professional dance brand Danskin in mainland China and Macao, and will enter the market in the fourth quarter of 2017.

According to the semi annual report, Lining plans to open 3-5 stores in the fourth quarter of 2017, with the main goal being landmark shopping malls with influential cities.

In the 2016 annual report, Lining had 5-10 stores planned for Danskin2017.

Another key word that constantly pushes Anta's gross profit margin and profits together with "multi brands" is "direct battalion".

In the early days of the development of the domestic sports brand, most of the franchisees and agents were engaged in the horse race enclosure. Then, in the case of relatively stable market, the higher requirements for the brand were put forward. The upgrading of the supply chain, commodity control and brand image, and after continuous development to a certain stage, it was necessary to maximize profits and pay more attention to the retail changes.

Direct battalion is a major means of maximizing profits. Compared with the larger discount supply to wholesalers, the direct retail outlets directly facing consumers have higher gross margins.

This is the beneficiaries of this area, benefiting from FILA, which basically entered the market in the form of direct battalion, has maintained a growth rate of 50%. Anta's gross profit margin has been steadily improving in recent financial cycles, and Desanto's business mode is basically straight.

Apart from Anta, another brand with a scale of direct battalion is Lining.

In the first half of 2017, there were 1544 stores and 4785 franchisees in Lining's 6329 stores, representing a net reduction of 67 and 44 respectively at the end of last year.

If revenue and net profit are the embodiment of strength at present, cash flow is a bargaining chip for future betting.

As of June 30th, Anta's net cash had exceeded 10 billion yuan, reaching 10 billion 30 million, compared with 5 billion 379 million last year.

In the first half of this year, Anta's free cash inflow exceeded 1 billion 800 million, mainly due to the net operating cash inflow almost doubled to 2 billion 58 million.

The debt ratio dropped by 7.7 percentage points to 3.4%.

The turnover days of inventory, accounts receivable and accounts payable are the only "bad news" in the data released by Anta, which changed from 64 days to 68 days, 37 days to 39 days, and 45 days to 49 days. However, such data is still quite healthy, which is comparable to that of fast fashion products.

Lining's inventory turnover days dropped from 94 days in 2016 to 85 days, but there was still a gap of nearly 20 days with the other three.

In terms of accounts receivable and accounts payable, Lining was second only to Anta, which was 56 days and 85 days, respectively, which improved compared with 2016.

In contrast, XTEP's data changed significantly, and the number of days of inventory turnover increased from 51 days in 2016 to 67 days. Accounts receivable days increased from 119 days in 2016 to 164 days; accounts payable days also increased from 107 days to 128 days.

The situation at 361 degrees was slightly improved, the inventory turnover days remained unchanged for 69 days, accounts receivable decreased from 163 days to 152 days, and accounts payable days decreased 1 days to 155 days, but they remained at a very high level.

As of the first half, XTEP's gearing ratio was 19.1%, XTEP's net cash and cash equivalent items amounted to 2 billion 566 million yuan, equivalent to 48.6% of net assets.

But XTEP has only 92 million 400 thousand cash from its business activities, the smallest of four, and has a huge gap with Anta 2 billion 58 million.

Lining's cash and cash equivalents in the first half of the year were 2 billion 365 million, an increase of 21% over the end of last year, and net cash generated by operating activities was 589 million, an increase of 244 million over 2016, helping Lining improve the cash flow situation.

In the first half of the year, the debt ratio of 361 degrees decreased slightly, from 26.7% to 24.5%, plus 488 million of net cash in the period, 100 million higher than the end of last year, 3 billion 352 million of banks and cash on hand, and an increase of more than 500 million over the end of last year.

Holding huge sums of money, Anta may continue to have big moves in the market in the future. For the acquisition, Ding Shizhong, chairman of Anta's board of directors, said at the press conference, "more international brands are the main ones, and domestic brands are complementary to us.

M & a must conform to our brand strategy and scale can be explored. If we have the current capital and strength, we will surprise you if we have the opportunity.

After 2015 and 2016 years of market warming and rapid growth, the domestic sports footwear market began to become cold in 2017.

For Anta, Lining, XTEP and 361 degrees, who successfully survived the last stock crisis, it is the most basic quality of brand managers to prepare for rainy weather before the market winds change.

In the first few months of 2017, in addition to the Anta's high-profile 10th anniversary celebration of listing, other brands rarely have voice and movement in a wide range. Even Lining's CBA strategic partnership is so big that it has just released a simple press release by Xinhua news agency.

Behind the calm is that brands are concentrating their attention on the most basic businesses.

Anta, the leader, is at the most powerful moment in history, with good revenue from the first tier cities to the four line cities, and more than 10 billion of its cash reserves allow capital to consider a long-term brand layout.

On the road to strong multi brands, as long as Desanto, Spandi, Kolon and even other brands that may be acquired in the future can replicate the success of FILA, Anta will have the capital to challenge Adidas's current status in the Chinese market and further to the real international brand management group.

The recovery of Lining has a good momentum, but it is not without flaws, which is much lower than the net profit of the industry average, and the cash holdings which are not dominant relative to XTEP and 361 degrees are not matched with the current revenue scale.

In terms of specific businesses, although Lining, children's clothing and electricity suppliers have quite good performance, but the revenue is too concentrated in the main brand and the Chinese market is always not a good thing, want to have greater development of the brand, once again competing with Anta, need more growth points.

By contrast, XTEP and 361 degree players, who have made sharp bayonets in third of the country's positions, have their own worries.

XTEP is experiencing a decline in revenue, and children's wear is always a weakness. But if we solve this problem, if children's clothing can reach the current level of 361 degrees, we can go back to healthy development.

Besides, XTEP also has a hidden crisis that relies too much on running categories. Once the domestic running market becomes colder in the future, XTEP will be the biggest among all brands.

Compared with XTEP, although the development speed of the 361 degree electricity supplier is slow, it is still in the fast growth, and the data on both sales and profits are very good.

At present, there is no serious crisis in 361 respects, but there are many aspects to be vigilant.

First of all, its debt ratio is still 24.5%. In the first half of this year, the interest paid by light has exceeded 102 million. Secondly, international business has made slow progress. Although the first half of this year has recorded a year-on-year growth of over 40%, it is obviously slower than that of last year's growth rate of over 80%.

As of the end of June, 361 degree international currently has 2122 sales outlets in Brazil, the United States, Europe and Taiwan, China, according to the 65 million 200 thousand yuan annual revenue calculation, which means that

The net revenue of a single node is only 30 thousand yuan.

In 2017, the competition of domestic sports brands has entered a new cycle. Anta has begun to work towards higher goals. Lining needs to further solve her problems in the recovery. While XTEP and 361 degree are making up for their shortcomings, we should pay more attention to the fact that the more ruthless market in the future may not allow them any more room for making mistakes.

More attention should be paid to the world clothing shoes and hats net.