Brand Clothing Home Textiles "Leader" Growth Continues To Conceal Worries

Influenced by the price of products and the favorable environment of consumption, most textile and apparel listed companies maintained good growth momentum in the first half of this year. Among them, the profits of the brand clothing enterprises and home textile enterprises increased notably, and the growth trend of the future is expected to be maintained.

However, the future development of the textile and garment industry is also faced with certain worries such as high cost, slow export growth, unstable consumption and increased inventory pressure.

　　 Brand clothing home textiles "leading"

According to statistics, as of August 23rd, Shenyin Wanguo textile and garment industry has 51. list The company released the semi annual report in 2011, excluding the loss of net profit of 5 companies and the decline of net profit of 7 companies, and the remaining majority of the company's profits maintained a good growth momentum compared to the same period last year. The 51 companies achieved a total revenue of 56 billion 450 million yuan, an increase of 27% over the same period last year, and realized a net profit of 4 billion 473 million yuan attributable to shareholders of listed companies, an increase of 54% over the same period last year.

In the first half of this year, exports and Domestic market demand As the market continues to improve, the overall operation environment of the textile and garment industry is improving. Brand enterprises are actively expanding the market to promote sales growth, and the price increase of products has also improved their profitability. The industry's income or net profit growth has reached the best level in recent years.

Of the 51 companies that have published semi annual reports, 7 companies have increased their net profit by 1 times over the same period. Among them, Smith Barney clothing net profit in the first half of 376 million yuan, a significant increase of 833.06% over the same period last year. The growth of the company's performance is due to the enhancement of product competitiveness. The terminal retail management capability of direct and franchisees has been continuously improved, and the number of terminal stores has increased steadily. Meanwhile, the gross profit margin of the main business of the company has reached 47%, representing a 4 percentage point increase over the same period last year. Another brand clothing company, seven wolves, also achieved a 41.29% increase in net profit due to the good sale of terminal.

At the same time, due to Product price rise With the increase in profitability, Huamao's net profit in the first half of the year was 357 million yuan, an increase of 469.32% over the same period last year. The net profit of the Bank of China in the first half of the year was 68 million 598 thousand and 700 yuan, an increase of 109.58% over the same period last year, and the growth in performance was mainly due to the sales growth of cashmere yarn and products.

It is noteworthy that, from the semi annual report, we can see that in addition to the good performance of the brand clothing companies in the first half of the year, home textile companies also have made outstanding achievements, and the future definite growth is also promising for the industry. The three medium-term net profit growth rates of Fufang, Luo Lai home textiles and Meng Jie home textiles of the main textile companies of the year were 79.28%, 73.84% and 46.86% respectively.

　　 Growth continues to conceal worries

The data also show that 29 textile and apparel listed companies have made forecasts for the first three quarters of the year. Only 4 companies are worried about it, and the other 25 companies are all pleased with the results, of which three companies have increased their performance by 100%. Pathfinder said that in view of the company's main business development is good, the market scale continues to expand, and in 2011 autumn and winter product futures booking is good, it is estimated that 1-9 months attributable to shareholders of listed companies net profit increased 50%-100% over the same period last year. Similarly, as the order is good, it is expected that the first three quarters will continue to grow, including seven wolves, search special, Kaiser shares and so on.

The industry said that many textile and garment enterprises are producing according to orders. Some brands' autumn and winter orders will grow well. The year-on-year growth rate is basically over 30%, basically locking the performance of the year. The industry therefore expects that the average profit growth rate of textile and garment industry will exceed 40% this year.

However, while the growth of textile and garment enterprises is likely to continue in the future, the industry also has some problems that can not be ignored, such as rising costs, multiple pressures on exports, some small and medium-sized enterprises operating difficulties, and unstable domestic consumption environment. {page_break}

The net profit in the 1-9 months is down by 20%-40% compared with the same period last year. Huafang textile also said that factors such as Japan earthquake, North Africa turbulence, slow recovery of developed economies, increased interest rates and reserve requirements, appreciation of the renminbi, fluctuations in raw material prices such as cotton, and rising costs of labor and energy, etc., will continue to exist in the company's declining gross profit and increased financial financing costs. The company expects to continue to lose money in the first three quarters.

In addition, many textile and garment enterprises are facing certain pressure of inventory because of the rising price restraining terminal consumption demand. The industry pointed out that if the contradiction between raising prices and restraining consumption can not be resolved, the development dilemma of the textile and garment industry will be more and more apparent.

Data show that in July of this year, the volume of retail sales of all kinds of garments reached 100% in the major retail enterprises nationwide, an increase of 4.62% over the same period last year, a decrease of 2.9 percentage points compared with the same period last year, and a 6.71% increase in total retail sales in 1-7 months, which is significantly lower than the 12.87% growth rate in the same period last year.