Impact Of Epidemic Situation: How Long Can Metsbouray Still Bear The Loss Of Wages

　　01

Three years in a row

In fact, it was in deficit before the outbreak.

From 2019 to 2021, Metersbonwe achieved revenue of 5.463 billion yuan, 3.819 billion yuan and 2.629 billion yuan, respectively, with a loss of 468.5 million yuan, 859.4 million yuan and 825.5 million yuan, respectively, with a cumulative loss of more than 2.1 billion yuan in three years.

In the semi annual performance forecast of 2022 issued by Meibang apparel, it is estimated that the net loss of shareholders belonging to the listed company in the first half of the year is 620 million to 680 million yuan, and the loss after deducting non recurring profit and loss is expected to be RMB 600 million-660 million yuan.

On the decline in performance, Meibang clothing attributed the cause to the epidemic. Affected by the control of the epidemic situation, the company's logistics headquarters in Pudong, Shanghai was unable to deliver goods to offline stores and online shopping nationwide for about two months, resulting in a decline in the company's operating revenue and operating profit. In addition, during the epidemic period, the performance of some franchisees was poor, the repayment was overdue and the aging of accounts receivable was getting longer. The company made credit impairment losses, which had a great impact on the net profit in the first half of the year.

Zhou Chengjian also mentioned the fatal impact of the epidemic on metsbanwei in an internal conference recording obtained by Yilan business. First of all, due to the logistics headquarters in Pudong, Shanghai, it is impossible to make normal replenishment and delivery to thousands of offline stores across the country in about two months; Secondly, online platform sales can not be delivered normally. In terms of performance, from March to June, the sales volume of metsbouray declined by 80%. Finally, the most important winter ordering meeting can not be held normally.

In this case, metsbouray hopes to supplement its cash flow by selling off its assets. In March 2021, Meibang apparel announced that in order to revitalize its existing assets, it plans to sell 100% of the equity of Shanghai Mogong Industrial Co., Ltd. jointly held with its subsidiary company to Shanghai Bacchus Liquor Co., Ltd., a subsidiary of Shanghai Bairun Investment Holding Group Co., Ltd., at a price of 448 million yuan. The proceeds will be used to supplement the company's working capital, It will have a positive impact on the company's financial situation and operating results.

In addition to selling off its assets, MetS Bonwe has also fallen into a wave of store closures, reducing its burden by closing poorly managed stores. "Each coat costs 50 yuan and pants costs 100 yuan three pairs." Mets Bangwei, which belongs to Keqi, Chifeng City, carries out the final clearance before the permanent closure of its stores. Chengdu Jindu store, Jinan Quancheng Road store, Shenyang Zhongjie store and Hegang store are all in the process of clearance. According to reports, many stores in MetS Bonwe seem to be in a big retreat.

At its peak, the number of stores nationwide reached 5220. By 2021, the number dropped to 1600, a 69% decrease. According to the 2021 financial report, 718 stores were closed during the reporting period. In 2020, metsbank closed 937 stores.

It is not a day's cold for the giants of the past to come to this day due to wages in arrears, layoffs, shop closures, and years of losses.

　 　02

Lose the foundation

In the post-8090 student era, MetS Bonwe is the representative of the trend. At that time, Metersbonwe aimed at young people aged 18-25, flaunting their personality, independence and freedom, and a sentence of "not taking the ordinary road" showed its brand style.

In 2008, Meister Bonwe was listed successfully, with more than 5000 stores in China. In 2011, the revenue was nearly 10 billion yuan, and the net profit was 1.2 billion yuan.

In the early stage of the development of metsbouray, the domestic leisure clothing industry is still in the Enlightenment period, with the awakening of consumption consciousness and the expansion of consumption desire. With the blessing of top stars such as Jay Chou, Zhang Shaohan and pan Weibo, the unique style of metsbouray has been enlarged and become a symbol of the times.

However, as foreign fast fashion brands gradually enter China, the competition among UNIQLO, Zara, H & M and other fast fashion brands is fierce, and the products become the key factor in the competition, while the products of MetS Bonwe are not competitive.

Take the fast fashion brand Zara as an example. A product's shelf life is no more than 4 weeks. It only takes 4-6 months from the design to the finished product sale. It can develop 3000-4000 new products a year at most. Self built factory + OEM improves the response speed of the brand to the market.

Zara has its own independent supply chain to ensure that the products are displayed in the exclusive stores as soon as possible after production. As the main business model of MetS Bonwe is franchisee, the cycle from design to shopping mall distribution is long, which means that the style of metsbouray's products from design to shopping mall is not accepted by the public.

As a result, the inventory backlog of metsbouray will fall into a cycle. By the end of 2021, Meibang clothing financial report showed that the book value of clothing inventory of the company was 1.121 billion yuan.

Metersbonwe cannot respond to consumer demand. The decline of customer satisfaction results in the loss of information, the loss of image and the loss of target consumers.

"Youth" has always been the focus of leisure clothing. The post-8090 consumers have grown up, and the aesthetics of generation Z is more fashionable. After all, metsbouray has become the pronoun of "soil".

Up to now, the market value of Metersbonwe has dropped from a high point of 38.9 billion yuan to 4.196 billion yuan, nearly 90% of which has evaporated. Its share price has also dropped from 31.5 yuan / share to 1.67 yuan / share, 90% lower than the issue price of 19.76 yuan / share.

Not only mattersbonwe, this year, the domestic casual clothing brands are having a hard time.

As of July 26, Semir clothing, Meibang clothing, taipingniao and other leisure clothing enterprises have disclosed semi annual performance forecasts, and the performance of several brands has declined. Among them, the net profit of SEMA clothing, taipingniao and langzi shares declined by more than 60%.

The net profit of SEMAR clothing in the first half of the year is expected to decrease by 80.46% - 86.47%. The net profit of Pacific bird is expected to decrease by about 68%. The net profit of langzi shares is expected to decrease by 87.14% - 91.43%.

According to several performance forecasts, affected by the epidemic, some offline stores can't operate normally, and the reduction of retail passenger flow is the main reason affecting the performance.

At the same time, the sales of raw materials increased due to the increase of sales promotion, in addition to the increase of sales promotion cost of raw materials; The fixed expenses such as rent and employee salary of taipingniao's Direct stores are relatively large, and the decline of retail performance leads to a significant decrease in the company's non net profit; Langzi Co., Ltd. is due to the opening of a number of women's clothing stores and a number of new medical and aesthetic institutions, resulting in a large increase in sales and management expenses in the current period.

In addition to epidemic factors, the overall decline of domestic leisure clothing industry is related to online impact and foreign fast fashion brand extrusion. On the one hand, with the rise of pinduoduo, 1688 and other platforms, a number of low-cost popular brands on the rise of the online impact on domestic leisure clothing brands; On the other hand, foreign fast fashion brands have advantages in terms of speed, product innovation and R & D, while domestic leisure clothing brands are far behind.