After The Listing Of Land Products, The Performance Has Been Rising All The Way, And Structural Optimization Has Become The Biggest Driving Force.

Recently, di Su fashion (603587, SH) published its 2018 annual report.

During the reporting period, the company achieved operating income of 2 billion 100 million yuan, an increase of 7.94% over the same period last year, and realized a net profit of 574 million yuan attributable to shareholders of listed companies, an increase of 19.59% over the same period last year.

Achieve double growth in revenue and profit.

Details of earnings

The report shows that the company achieved operating income of 2 billion 100 million yuan year-on-year, an increase of 7.94% over the same period, and a net profit of 574 million yuan attributable to shareholders of listed companies, an increase of 19.59% over the same period last year.

It is expected that every 10 shares will distribute cash dividends of 10 yuan (including tax) for each share, and the total cash dividend will be 401 million yuan.

Meanwhile, a quarterly report released in 2019 showed that the company achieved operating income of 584 million yuan during the reporting period, an increase of 13.53% over the same period, and a net profit of 195 million yuan attributable to shareholders of listed companies, an increase of 32.58% over the same period last year.

According to brand:

DAZZLE operating income of 1 billion 232 million yuan, an increase of 7.15% over the same period.

DIAMOND DAZZLE operating income of 170 million yuan, an increase of 14.77% over the same period last year.

D 'zzit business income of 684 million yuan, an increase of 6.88% over the same period;

RAZZLE operating income of 92 million yuan, an increase of 241.75% over the same period last year.

By Region:

Because of the income from Taobao, Tmall and other online e-commerce channels merged into eastern China, the region achieved a revenue of 858 million yuan, leading the domestic regions, an increase of 12.68% over the same period last year.

Southern China district has achieved 17.62% revenue growth and 79.42% gross profit margin.

In 2018, the company opened 2 new stores in Japan and Macao respectively, and overseas business income increased by 73.16% compared to the same period last year, and gross profit margin reached 82.89%.

Store situation:

As of December 31, 2018, there were 1062 retail outlets in mainland China, Macao, China and Japan.

From 2015 to 2017, the annual net profit of earth element remained at about 500 million yuan, which was relatively stable.

However, the number of direct outlets is relatively low, although the proportion of distribution channels has been declining during the period from 2015 to 2017, but as of 2017, the number of outlets was only 38%.

Overall, DAZZLE brand stores contribute about 2 million 10 thousand, while dzzit stores only about 1 million 787 thousand.

It is worth noting that brand DIAMOND has a total of 53 stores, but the average contribution of single stores is 3 million 210 thousand.

Single brand performance is outstanding.

In the former media communication conference, di Su said that the proportion of shops currently in direct selling and distribution was maintained at 4:6.

The ideal state is to increase the proportion of direct battalions, but dealers in the two or three and remote cities will be more familiar with the local market.

Brand core competitiveness

Limited by Share Ltd, founded in 2002 in Shanghai, China, is a multi brand fashion group.

Since its inception, the company has positioned itself as a medium and high-end brand with four well-known clothing brands, forming a multi-dimensional and deep-seated penetration into the fashion industry.

During the reporting period, we will focus on marketing network system, brand promotion, information pformation and upgrading, design research and development, personnel training and logistics, in order to promote brand development.

R & D expenses increased by 9.79% to 58 million 120 thousand yuan over the same period, with 189 R & D personnel, accounting for 7.3% of the total number of companies.

Di Su fashion said that the steady growth of business revenue was mainly due to the steady growth of the market size and the total number of stores increased by 24 in 2018 compared with the same period last year.

As of December 31, 2018, the company's 1062 retail outlets covered the vast majority of provinces, autonomous regions and municipalities directly under the central government, and opened stores in Macao and Japan, initially forming a nationwide marketing network with "one tier city as the core and three or four line cities simultaneously".

This will help the company to better grasp the industry opportunities for the rapid growth of the high-end women's clothing market, enhance the penetration of the company's products to target consumers across the country, and to a great extent enhance the brand awareness of the company.

2019 business plan: in the existing brand, the main brand DAZZLE enjoys a certain popularity and market share in the high-end women's clothing. Next, the company will continue to increase market share, single store revenue and customer parts as the core assessment index, strengthen member management, and consider extending the category design to enhance the brand additional value; D zzit as the main brand for young consumer groups, will expand the market share and increase single store income as the core goal; high-end brand DIMONDDAZZLE will continue to maintain light luxury style and focus on quality.

Category structure and improvement space for men's clothing

Product category broadening, from the product structure point of view, from the product structure, the "coat", "coat" and "skirt" are the main source of its revenue.

Specifically, the "jacket" revenue is 769 million yuan, accounting for 36.7% of revenue, the "jacket" revenue is 517 million yuan, revenue accounted for 24.7%, and "skirt category" revenue was 496 million yuan, accounting for 23.7% of revenue.

It is not difficult to find that compared with other clothing companies, cross-border products are diversifying.

At the recent media conference, Mr Tung said that the company is currently considering expanding the industrial chain. "At present, there are only men's wear and women's wear, such as children's wear, bags and accessories, and so on, which is what the company wants to expand in the future."

At the same time, increase the proportion of Direct stores, and strengthen the brand's deep management of shops.

It is worth noting that the RAZZLE officially launched in September 2017, though the RAZZLE business income increased by 241.75% over the same period last year, at the same time, the operating cost increased by 247.08%. The main reason is the large increase in inventory.

The brand is still in its nurturing stage. By the end of 2018, the international famous brand designer joined the company in charge of the design and research of men's clothing, and plans to adjust its design style and marketing channel continuously.

Since the listing, the overall growth rate of the local fashion has been steadily increasing. We can see from the earnings report that the growth of the local fashion is very obvious. The impetus for the growth of the direct store is very obvious: the direct outlets and distribution stores are divided into 910 million outlets, 378 stores, and 2 million 408 thousand stores in 2018.

There are 930 million outlets, 684 stores, and 1 million 359 thousand stores in 2018.

The gross profit margin of the outlets is on average 77.73%, much higher than that of the 69.70 outlets.

Government subsidies also occupy a large proportion. The company and its subsidiaries receive a government subsidy of 82 million 444 thousand yuan, of which the revenue related government subsidy is 82 million 444 thousand yuan, which has reached 10% of the company's latest audit of net profit attributable to the parent company owners. It also reflects the value and expectation of the policy and the market for the fashion industry.