XTEP'S Net Profit Listing Is The First Decline Now, Which Will Reduce Orders.

< p > recently, several sports brands have fallen into the nightmare of performance.

Last Friday, XTEP released its 2012 annual results, which showed that XTEP's net profit decreased by 16.18% to 810 million yuan last year, while Anta, 31st, PEAK's performance has slipped and its stock is also increasing. Many companies have reduced orders.

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"P > < strong > XTEP's net profit listing for the first time to fall < /strong > /p >

< p > according to XTEP's latest financial results, in 2012, it achieved a revenue of 5 billion 550 million yuan, a slight increase of 0.19% over the previous year, a net profit of 810 million yuan, a 16.18% decline over the previous year, and a gross profit of 2 billion 258 million yuan, unchanged from the previous year.

This is the first decline since XTEP went public.

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< p > not just XTEP, but the Anta, 31st and PEAK performance of the previous earnings reports are all down.

PEAK's net profit fell 60.1% last year, and its net profit dropped nearly 4 last year, and Anta's net profit dropped by 21.5%.

In addition, Lining issued a notice at the end of last year, said the company is expected to record a substantial loss in fiscal year 2012.

This is the first loss of Lining's performance in 2001.

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Less than P, 5 years ago, in 2008, XTEP earned 2 billion 867 million yuan in revenue, up 110% from 2007.

Lining achieved operating income of 6 billion 690 million yuan in 2008, an increase of 53.8% over the same period last year.

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< p > according to Mr. Zhang, a dealer who worked for six years in the sports brand industry, from 2006 to 2008 is the golden period for the development of sports brand. With the help of the Beijing Olympic Games in 2008, the development of each brand has reached its peak. The brands continue to shop in the country crazily, with the highest brand reaching nearly 8000 stores nationwide.

"Demand and market are magnified infinitely."

Mr. Zhang said.

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< p > < strong > large wholesale mode, slow response of supply and demand < /strong > < /p >

Lining, executive director and executive vice president Jin Zhenjun of the P, told the media that the main problem facing the domestic sports brands in the short term is the widespread use of the product wholesale mode in the domestic "a target=" _blank "href=" //www.sjfzxm.com/ "clothing" /a "industry, resulting in too fast development, excessive channel inventory and rising costs.

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< p > according to the analysis of the industry, this wholesale mode makes the brand business very slow in response to the market supply and demand, resulting in more goods stored by the agents. The brand will also store more commodities to replenish the goods, and the stock will roll up like snowballs.

Since last year, in the face of China's economic slowdown, the industry has been coming from the cold winter.

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< p > < strong > some enterprises will reduce the order quantity < /strong > < /p >.

< p > inventory has become the heart of several brands, and brands are beginning to break their stock.

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< p > XTEP reported that last year the stock was 583 million yuan.

Last year, the average stock turnover days of XTEP increased by 7 days to 70 days. The average turnover days of accounts receivable and bills receivable increased from 64 days to 74 days.

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Ding Shuibo, chairman and chief executive officer of XTEP P, said in a performance press conference that the order will be lowered this year, so that dealers can easily face the inventory and the number of orders will be slightly reduced in the third quarter.

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< p > 31st degree has also said in the earnings report that in order to avoid backlog of stocks in the depressed market, orders for autumn and winter orders in 2012 dropped by 10% and 26% respectively. It is estimated that orders for spring and summer ordering and autumn orders will decrease by 23% and 19% respectively in 2013.

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Mr. P concluded that reducing inventory is the right direction, but the scale of inventory can not drop rapidly in a short time. The development of sports brand industry is still facing serious challenges.

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