Under The Epidemic Situation, The Consumption Of Children'S Clothing Decreased Sharply, And The Business Income Of Anel In The First Half Of The Year Was Only 491 Million!

Shenzhen aner Co., Ltd. (hereinafter referred to as "the first share of children's wear" of a share) disclosed the performance express of the first half of 2020 in the evening of July 29. The company expected to realize the operating revenue of 491 million yuan, a year-on-year decrease of 24.96%; the net profit loss attributable to shareholders of the listed company was 14.3065 million yuan, a year-on-year decrease of 125.41%.

As for the reasons for the performance changes during the reporting period, anel explained that affected by the epidemic situation, residents' going out activities were reduced, customer flow in shopping malls and shopping centers was depressed, and children's clothing consumption scenes were reduced, which greatly affected the company's business. In addition, the company expanded more stores in the previous year, and the company's store rent and management fees increased.

Anel said frankly that the company took measures to speed up the adjustment of sales channels and sales methods and reduce non operating related expenses to cope with the epidemic.

The industry believes that offline retail is greatly affected by the epidemic. From the perspective of consumption types, clothing and other optional consumption is more affected. Affected by the epidemic, some offline clothing stores in China are closing. In the traditional sense, the sales volume of clothing in January February is relatively high. Affected by the overall performance of the category, online retail sales decreased by 18% from January to February. From April to may, the total sales volume decreased by 7%.

Yu Xuhui, an analyst with Changjiang Securities, said that since February, the retail environment at home and abroad has been under pressure under the background of the spread of the epidemic. Physical retail channel has experienced a sharp decline in passenger flow, large-scale closure of stores, but limited recovery of passenger flow. From the perspective of retail performance of representative markets, China's clothing retail pressure is the largest from February to March, and has gradually recovered since April; in mature markets represented by the United States, Japan, and the European Union, the retail pressure has increased significantly since March, and the retail decline in June has eased marginally. With the passage of time, the cash flow pressure of physical retail increased. Under the background of no obvious reversal of retail environment, some participants choose to close stores and exit.

Observation shows that the frequency of personnel flow during the epidemic period is reduced, which means that the retail sales of physical clothing stores are reduced. Considering the seasonal characteristics of clothing products, operators often use promotional methods to increase cash return, which further damages the short-term profits.

According to Yu Xuhui, in terms of the operation performance of physical clothing stores during the epidemic period, the decrease of retail sales and the increase of promotion discount level often occur at the same time, and it is expected that the periodical operation pressure at the retail end will be more severe. It should be emphasized that before the cash flow of dealers / retailers is exhausted, the periodic losses will not lead to the complete withdrawal of physical stores. However, the prolonged duration of the epidemic and the subsequent upgrading of discount promotion will significantly increase the pressure on small and medium-sized dealers / retailers; at the same time, the trend of consumption moving online will also reduce the living environment of physical retail. Considering the relatively weak risk tolerance of small and medium-sized participants, it is only a matter of time to shuffle the clothing retail link.

According to the public information, anel is a private brand clothing enterprise mainly engaged in medium and high-end children's wear business, and owns the "annil anel" children's clothing brand. As of the end of December 2019, anel has set up 1505 retail stores nationwide, including 1085 Direct stores, accounting for 72.09% of the total number of offline stores.

Since the beginning of 2020, affected by the epidemic situation, in the first quarter of the year, the company's operating revenue reached 260 million yuan, a year-on-year decrease of - 27.31%; the net profit attributable to shareholders of listed companies was - 929400 yuan, a year-on-year decrease of 101.98%.

Yu Xuhui previously said that with the alleviation of the domestic epidemic situation and gradual recovery of offline brand retail, clothing consumption has rebounded further since May. It is expected that the brand end operation will be significantly improved from the second quarter and is expected to return to normal in the second half of the year. From the perspective of growth, children's wear is still one of the most growing tracks in the clothing industry in the next five years. The growth is mainly driven by the consumption upgrading factors represented by the increase of children's per capita consumption frequency. In the medium term, the head companies have the willingness and planning for category expansion, and the ceiling of business growth is likely to break through continuously. Based on this, it is expected that the leading professional children's wear will still be strong Zheng HENGQIANG.