Steady Growth Of The Main Brands Of The Day Fashion, A Slight Increase In Revenue In The First Half Of The Year

In August 26th, the motherboard fashion enterprise fashion day (603196) released the 2019 semi annual report. Half year report shows that in the first half of 2019, the business income of broadcast fashion reached about 518 million yuan, an increase of 1.39% over the same period last year. The net profit from the same period decreased by nearly 34 million 200 thousand yuan compared with the same period last year. In the first half of the year, there were 983 brand stores in the company, compared with the same period in 2018, the number of stores decreased by 33.

Industry related stakeholders told the Securities Daily reporters that the performance of clothing listed companies was related to the low season characteristics of the apparel industry in the first half of the year, but also closely related to the external environment. Affected by the downward pressure of the economy and the weakness of consumer demand, the cost growth and sales of garment industry have slowed down. At the same time, overseas fast fashion brands are showing signs of weakness in China. The performance of women's clothing companies listed in the semi annual report is not satisfactory.

In the first half of the year, the broadcast brand, the core brand of the day fashion, continued to maintain steady growth, operating income grew by 3.14% over the same period last year, faster than the 3% year-on-year growth rate of clothing shoes and hats and needle textiles industries in 1-6.

"Securities Daily" reporter found that the net profit decline of the daily fashion is mainly due to the expansion of physical stores, resulting in the company's sales expenses, management fees and other expenses increase faster than the income increase. In the first half of the year, sales and management expenses increased by 7.87% over the same period, higher than the 6.81% increase in direct sales business.

In fact, the daily fashion has begun to adjust its business strategy. In the first half of 2019, the daily fashion was closed down by improving traditional channels and business models. The inventory size of books has dropped from 377 million yuan at the beginning of the year to 295 million yuan at the end of June. Meanwhile, the net cash flow of operating cash has increased by about 19 million 220 thousand yuan over the same period last year. In fact, in the first half of the year, the year-on-year growth rate of sales expenses and management expenses of the broadcast fashion was significantly lower than that of 21.61% in 2018. In the second half of the year, the company will continue to focus on optimizing and adjusting stores, reducing costs and increasing efficiency, and controlling costs.

Faced with the challenging external environment, the daily fashion said in a semi annual report that the company will actively analyze and respond to changes in the market environment, speed up the improvement of traditional channels and business models, focus on improving the profitability of new brands, strengthen multi brand operation and continuously promote the construction of the whole network with the focus on "consumer value experience". At the same time, we should optimize the organizational management structure, reduce costs and increase efficiency, improve the level of intelligent lean supply chain, continuously strengthen product design and research, and consolidate the core competitiveness of the company's creative design.