Close The Direct Store "Bet" Franchisees, Tens Of Thousands Of Employees Of The United States And Apparel Last Year, The Reduction Of 2803 People.

The local casual wear giant Metersbonwe apparel Limited by Share Ltd (hereinafter referred to as "Mei Bang dress") announced in the evening of May 24th in response to the Shenzhen stock exchange's reply to the company's 20188 year annual enquiry letter. In 2018, the company achieved operating income of 7 billion 677 million yuan, an increase of 18.62% over the same period last year, of which the direct revenue grew by 11.19%, and its joining income increased by 32.98%. At the end of 2018, the total number of employees was 7969, which was 26.02% lower than that at the end of 2017.

The increase in per capita operating income during the reporting period was mainly due to the year-on-year increase in operating income and the reduction in the total number of employees.

In 2018, the main business income of the United States was increased by 18.89% over the same period last year, and the gross profit margin of the main business decreased by 2.79 percentage points compared with the same period last year.

First, the company increased the intensity of inventory digestion, the overall sales discount rate has declined, resulting in direct and franchise channel gross margins have declined.

Among them, the gross profit margin of the direct battalion dropped by 1.68 percentage points, and its gross profit margin dropped by 3.27 percentage points.

Two, the company optimizes the channel structure, vigorously develops franchise channels, and closes some direct and inefficient stores at the same time. The proportion of the relatively low gross income is increased. In 2018, the company's revenue increased by 4.19 percentage points compared with the same period last year.

At the same time, due to the lower cost of franchising channels and the higher operating profit margin than the direct channel, according to the 2018 business segment calculation, the direct operating profit margin is -1.25%, the profit margin of franchise business is 3.28%, and the increase of affiliate income has lowered the gross margin level, but it has raised the overall profit level of the company.

In addition, as of the end of the reporting period, the research and development staff of Smith Barney were 329, 160 fewer than the beginning of the year, and the average number of R & D personnel in the whole year was 443. Compared with the average R & D personnel in 2017, the average number of R & D personnel was reduced by 41, and the average R & D personnel number had not changed significantly.

In the four quarter of 2018, the company came closer to the terminal market and responded more quickly to the diversified clothing needs of consumers. The original type of craft workers who were originally included in the R & D personnel were classified into the supply chain system, so the number of R & D personnel at the end of 2018 declined.

The main reason for the decrease in the end of 2018 is the implementation of the pformation and upgrading of the channel, and greater efforts to develop the market, while optimizing the direct channel and closing the direct and inefficient stores.

During the reporting period, some of the front-line salesmen from the company are streamlined or pferred to the direct channel, while the franchisees are employed by the franchisees themselves. The company only needs to deploy a small number of channels and join the management staff.

Up to the end of the reporting period, the total number of in-service staff was 7969, representing a decrease of 2803 compared with the same period, of which sales personnel were reduced by 2478. The company has greatly improved the per capita output efficiency by optimizing the organizational structure and human resources.

Mei Bang apparel has admitted that since 2016, the company has focused on its main business and returned to its major areas, and has made great efforts to promote the pformation and innovation of its own brand business, optimize and expand the channel structure, and enhance the retail management capability to promote the company's performance improvement.

After years of unremitting efforts, the profitability of the main garment business has been continuously improved, attributable to the net profit of shareholders of listed companies after deducting non profits, and sustained losses reduction, and realized profitability in 2018.

The company will continue to follow the path of brand upgrading, product upgrading, channel upgrading and retail upgrading in the future, and is committed to satisfying the rising consumer demand with better fashion products and shopping experience.

At the same time, we should further strengthen cooperation with multiple business partners, and promote the implementation of the channel development strategy of shopping centers plus traditional business circles in parallel, so as to further optimize the terminal store structure.

At the same time, the United States and costumes explained that in 2018, the company turned the profit into a profit and the net profit was relatively small. Therefore, investment income and government subsidies had a greater impact on the net profit this year, but compared with the company's operating income, the investment income and government subsidy accounted for 0.63% and 0.43% respectively.

The company's future profit improvement mainly depends on the continuous improvement of the main business competitiveness.

Li Jie, an analyst with Everbright Securities, thinks that since 2012, the state of the United States has entered the adjustment period and the income has declined with the industry. The 2013-2014 year income decline has reached a high double-digit rate. The income decline has narrowed in 2015, but the cost rigidity and the increase in income tax have resulted in a loss of 432 million yuan in net profit for the company. This is a low performance in recent years. The 2016-2017 year low income figure is fluctuating, and it is hard to say that it has improved significantly. In 2017, the loss is 305 million yuan, the cost is rigid and the amount is large.

In 2018, American Apparel revenue improved significantly, and the year-on-year growth rate of income increased to nearly 20% from the last year's positive and negative digits. The main changes were mainly brand adjustment and revenue growth. The obvious improvement of franchise channels was the main contributing factor.

Analysis shows that the main brand dominates the revenue of the state's clothing, and the continuous adjustment of the main brand in the past 2012-2017 years has led to no obvious improvement in the overall revenue of the state.

The main brand direct battalion and join, the direct channel improvement before joining, the direct channel revenue in 2015 has increased year by year, an increase of 7%, an increase of 10% in 2016 to continue to improve, but due to the effect of the channel adjustment has not yet been reflected, continue to decline, dragging the overall income growth.

In 2018, the total revenue of franchise side increased by 33% (most of the main brands) showed a marked improvement, which promoted the growth of American Apparel income significantly.

Analyzing the reasons for the improvement of the main brand business, Li Jie predicted that in recent years, American brands continued to upgrade their brands, products and channels. In 2016, the company's brand positioning and products for the main brand were recombed, upgraded and fission, and the style and quality were fully styled. The five series of NEWear, HYSTYL, N vachic, MTEE and ASELF were adapted to different styles and needs to enhance the marketability of the products.

In terms of channel, the company has implemented terminal image upgrading, store management standardization, refinement, promotion management refinement, adjusting and optimizing the channel structure and layout, and setting up shopping center benchmarking shops. The total number of shops has been reduced, and the single store area and efficiency have improved.

Li Jie judged that the United States and the state of the apparel industry directly joined the franchise, and the improvement effect lagged behind the direct channel. However, since the growth rate of the franchising channel in 2018 is relatively high, it can be seen that the overall business adjustment effect has been reflected.

Future Ltd will continue to focus on improving the efficiency of single stores and the main channel of expansion. The effect of fee control will be apparent, and the net profit and net interest rate will be further repaired in combination with the continued improvement of the provision.

In addition, the financial report also showed that in 2018, the United States confirmed that the investment income of 48 million 328 thousand yuan.

The company's investment income mainly comes from the recognition of the investment income of the joint venture Huarui bank, which has a sustained profit and loss impact on the company. The confirmation of the investment income mainly depends on the operation of the joint venture Huarui bank.

In 2018, the company's financial statements showed a total of 33 million 106 thousand and 400 yuan of government subsidies, all of which have been received.

Meanwhile, by the end of the reporting period, the balance of apparel in the United States was 2 billion 349 million yuan, and the corresponding inventory was set at 448 million yuan, the book value of the stock accounted for 32.58% of the total assets, and the proportion of inventory depreciation provision was 18.34%.

Mei Bang apparel said that by the end of 2018, the proportion of company inventory accounts for 32.58% of total assets. Compared with the same industry companies, the company accounted for a relatively high proportion of total assets at the end of 2018. However, compared with other parts of the same industry, the proportion of the total assets of the company at the end of the reporting period decreased by 6.19 percentage points compared with the same period last year.

The company's direct income in 2018 accounted for 60.48%, which is at a relatively high level in the same industry. The direct shops need a large number of commodities for display and shop floor, to a certain extent, pushing up the proportion of inventory to total assets.

In 2018, the daily turnover of Smith Barney clothing inventory was 208 days, 25 days less than that of the same period last year.

The company does not have a large amount of long term unsalable goods, and over 3 years old stock accounts for only 1.30% of the company's inventory.

American Apparel says that as a clothing retailer, the price of products is greatly affected by the seasonal and fashion of clothing. The net realizable value decreases with the increase of the age of the store. Therefore, the company will estimate the net realizable value of the inventory according to the estimated selling price, the estimated sales cost and the amount of the relevant taxes and fees according to the actual sales situation, stock age, inventory obsolescence, and unsalable sales.

On the balance sheet date, inventories are measured in terms of the cost and net realizable value, and the provision for the cost of the inventory to fall below the net realizable value is included in the current profit and loss.

After the sales of goods prepared for depreciation in the past year were realized after the sales were realized in the year, the corresponding provision for the depreciation of the inventory has been sold.

Mei Bang clothing will also use a variety of channels to digest inventory products, match the goods resources according to the consumption characteristics of different channels, and make full use of the existing direct battalion and affiliate channels to vigorously promote sales, develop special outlets and use various online sale channels to speed up the sale of over season goods and seasonal unsalable goods, and speed up the withdrawal of funds.