On The Other Hand, The Second Quarter Revenue Of Adidas Dropped 34% In The Second Quarter

In the twinkling of an eye, clothing enterprises and brands have begun some offline activities, and the physical retail industry has also begun to recover slowly. Want to know what major events happened in the fashion industry last week? Csl.com will take you to see the major events in the clothing industry.

Domestic events: August 3 - August 9

Seven wolf buy back shares for the first time

On the evening of August 3, Fujian seven wolf Industrial Co., Ltd. (hereinafter referred to as "seven wolf") issued an announcement on the progress of share repurchase, and decided to use its own funds to repurchase the RMB common shares (A shares) issued by the company by means of centralized bidding transaction, so as to implement the equity incentive or employee stock ownership plan.

As of July 31, 2020, seven wolf has purchased 5.5 million shares of shares, accounting for 0.73% of the current total share capital. The highest transaction price is 5.88 yuan / share, the minimum transaction price is 5.63 yuan / share, and the transaction amount is 31.49 million yuan (excluding transaction costs).

Zhongfu said: This is the first time that seven wolves have made a plan to buy back shares since it was listed 16 years ago, which is really rare. Seven wolf said that this share repurchase is for the incentive plan, which is a real buyback after 2016. The buyback of seven wolves in this special period makes people have no doubt, and the explanation can not stand firm, which depends on the implementation of the policy of seven wolves in the later stage.

Muchang group does not accept Esprit's claim for compensation for breach of contract and intends to "vigorously defend"

Muchang group (01817. HK), the parent company of Chinese men's wear brand GXG, issued an announcement in response to a letter from Wancheng resources (a subsidiary of Esprit global, an indirect wholly-owned subsidiary of Hong Kong Fashion Retail Group Esprit global) announcing the termination of the joint venture agreement with the group. It said that it would not accept any accusations made in the letter and compensation for breach of contract of RMB 50 million, and proposed to make an announcement on the company's rights under the joint venture agreement and Any litigation that may be brought by Wan Cheng is "vigorously defended".

At the end of the month, when the company announced that it would terminate its cooperation with global group, it would also cause great concern for the following two topics. Esprit global suddenly announced that it would terminate the cooperation, and Esprit's brand restructuring would be suspended. We are also concerned about how to carry out the plan in the half way.

Where is the road of local clothing brand under the epidemic situation?

At the end of July, affected by the epidemic situation, SEMAR clothing announced that it plans to sell 100% of the assets and business of sofiza SAS, which owns 100% equity of the kidiliz group. Through this sale, SEMAR hopes to realize the divestiture of the assets and business of the kidiliz group, which is conducive to reducing the risk of the company's operation and avoiding greater loss of the company's performance.

Zhongfu said: after ploughing into the leisure clothing and children's wear business, SEMAR wants to expand the international market to maintain growth, and has invested a lot of money to acquire 100% equity of sofiza sas1. After all, SEMAR has done a better job in children's clothing business. It is considered by the industry to enter the international plate and will become an important participant in the global children's wear industry. However, it does not want to be sold after less than two years of acquisition. In fact, sofiza SAS has been in a state of loss after the acquisition. Due to the decline of revenue and the decrease of stores, SEMAR can not revitalize sofiza SAS, and can only reduce costs by selling.

Rongmei shares impact gem, women's clothing "Taobao brand" the first stock is about to be born?

On July 31, rihe Rongmei Co., Ltd. (hereinafter referred to as "Rongmei") disclosed its IPO prospectus and planned to raise 601 million yuan on the gem, mainly for the construction of production bases. Rongmei's main business is online clothing brand retail. Relying on the "Rongmei rumere" brand, the annual SPU reaches 4000 models, which are sold through tmall and Taobao. The upstream relies on garment manufacturers, while the downstream sells through e-commerce channels. The company says its main competitiveness lies in planning and design and supply chain management.

Zhongfu said: Rongmei, which once ranked first in Taobao women's wear, relies on stable product supply chain and clothing quality, as well as efficient business efficiency, and successfully circles the high-quality traffic on the Internet. Now the women's clothing market can be said to be saturated, and the competition is also gradually increasing. In this case, Rongmei chooses to be listed. Why? If Rong Meizhen is successfully listed, it will become the first stock of A-share women's clothing "Amoy brand". How about its future development?

International events: August 3 - August 9

Nike headquarters to lay off 500 employees to accelerate transformation

According to the latest announcement, Nike will permanently lay off at least 500 employees at its global headquarters in Oregon. The layoff will begin on October 1, including members of Nike's corporate leadership team and some corresponding administrative assistants. It is understood that Nike has also recently closed its Arizona factory, affecting about 192 employees, which is expected to generate $200 million to $250 million in severance costs.

China Service said: due to the impact of the epidemic, this year, Nike can be described as a "miserable" word. It has issued a number of layoffs decisions, and the wholesale channel and direct retail channel have been hit hard. Maybe the layoff can directly reduce the output of costs. In addition, under the influence of external environment such as Freud sports, cancellation of sports events and market competition, a large number of Nike offline stores were closed, which led to inventory accumulation and supply chain transportation damage. The performance also showed a certain loss. In the latest quarterly financial report, Q4 had a net loss of $790 million, which was the second loss in the past eight years. We can see how much the impact is Yes.

The parent company makes $750 million by selling masks, but champion is not so popular in China

Not long ago, champion's parent company, Hanes brands, released its second quarter results. This American underwear and sportswear manufacturer owns champion, which we Chinese call champion, as well as DKNY and other brands. Sales in the second quarter were $1.73 billion, down slightly from $1.76 billion in the same period last year, but profits increased in the second quarter.

China Service said: the epidemic in 2020 will bring changes and even restructuring to all industries. When the business of Hanes is retrograde, it's not the business of brands and the business is going up. Champion, as the main brand, has not contributed so much, and sales are also declining, although the e-commerce business is also growing.

Adidas revenue fell 34% in the second quarter. How long does it take to clear inventory at a discount?

Adidas had an operating loss of EUR 333 million in the second quarter, including about 250 million of coronavirus related expenses. The cash position was stable at 2 billion euro as effective cash measures prevented capital outflow to the end of the quarter and the third quarter, and business trends improved. The outlook for the third quarter means that operating profit increased by about 1 billion euro compared with the second quarter.

Zhongfu said: because of the epidemic situation, it was forced to press the pause button, and the sales of Adidas were also hit to a certain extent. In addition, some related sports marketing were also forced to stop or postpone, which is one of the reasons for the decline of adidas' performance. Therefore, we can see that Adidas's recent promotional activities are slightly frequent and the discount strength is large. Adidas can be seen in some large-scale activities, which is probably related to its inventory and cash flow.

What are the hidden "doors" behind the "bustle" of the world's first show after the LV epidemic?

The new crown epidemic has completely disrupted the pace of the global fashion industry. While most people are still waiting or stopping to publish online, Louis Vuitton made bold decisions and made efficient preparations. Last night, Louis Vuitton successfully completed the world's first offline fashion show after the epidemic in Shanghai, China.

The offline fashion show of LV has caused a sensation in the fashion industry. The celebrities who attended the show, such as Wu Yifan, who was on the show, produced great topics. It can be said that the marketing of Lv's show was very successful. At the same time, LV carried out synchronous live broadcasting on multiple social platforms, so that Chinese audiences can see the big show of luxury brands and directly reach more consumers, which is also wrong One of the strategies of constant grounding gas.