Children'S Clothing Brand Last Year'S Revenue Of Over 1 Billion 200 Million Yuan, Inventory Problem Is Still Serious, Is There Any Prospect?

Recently, the company released its 2018 performance report. Last year, its total business income was 1 billion 212 million yuan, an increase of 17.55% over the same period last year. Net profit attributable to shareholders of listed companies was 84 million yuan, an increase of 21.52% over the same period last year.

Among them, the company's channel optimization led to obvious growth in performance, but the company's internal problems remain unresolved.

Where will he go in the future?

The main reason for the high growth of the company's performance is the optimization of channels.

Last year, its online revenue was 417 million yuan, an increase of 37.85% over the same period last year, and its operating income was 792 million yuan, an increase of 9.21% over the same period last year.

It is worth mentioning that during last year's "double 11" period, the sales of the company sold for the first time in the hundreds of millions of yuan, and succeeded in Tmall's "double 11" billion brand club. "The company's flagship store" ranked third in the sales of children's wear / parent-child category store.

In this regard, Sun Yu, an analyst with China Merchants Securities (600999), said that the brand and product quality of the company are in the first tier. With the continuous optimization of the national channel structure, it is expected that the annual net growth of equity incentive net profit will be increased by 20% between 2019 and 2020.

It is noteworthy that the line has changed over the past year.

Although overall, the total number of stores and the total number of stores in 2017 changed little. Direct stores only increased by 16, while stores only reduced by 18.

During the reporting period, the number of newly opened stores was 211, including 136 Direct stores and 75 franchised stores. The number of closed stores was 213, of which 120 were direct stores and 93 were franchised stores. The total number of stores in the whole year was only two.

The cost has also increased significantly. Last year, the sales cost was 490 million yuan, an increase of 16.7% over the same period last year, and the management cost was 56 million yuan, up 18.46% over the same period last year.

However, because of the increasing inventory, he has been criticized.

Last year, inventories were 428 million yuan, accounting for 34.60% of total assets, up 7.27% over the same period last year.

Among them, the inventory of goods was 342 million yuan, accounting for 79.87% of the total inventory.

In addition to changes in the channel, he said that the sales of goods sold in winter last year did not meet expectations, and to a certain extent, led to an increase in inventory.

As of December 31st last year, the company prepared inventory price drop to exceed 50 million yuan, accounting for 10.48% of the inventory balance.

In addition to the increase in cost and inventory risk, there are also hidden dangers in product composition and quality.

It is worth noting that, at present, all of its income comes from the "Annil ener" brand, and the 81.91% main revenue comes from the big children's wear products, and there is a risk of excessive reliance on single brand and large child wear products.

In addition, the quality of ANN is worrying and has been on the blacklist for many years.

During the period from 2012 to 2017, aneri clothing was found to have many problems, such as formaldehyde content exceeding standard, unqualified index such as cashmere volume, substandard degree of down cleaning, fiber content and unqualified use instructions.

According to the relevant data, the scale of children's wear market in China has shown an overall growth momentum. In 2017, the market scale has reached 179 billion 600 million yuan. From 2018 to 2020, the children's clothing industry in China is expected to maintain a compound growth rate of around 14%, and the market scale in 2020 will reach 267 billion 900 million yuan.

Experts from the China Clothing Association say that as the first group of children's clothing industry, there is a great room for future development. But in the current situation, controlling expenses, reducing inventory risks and enriching the product mix are urgent problems to be solved.