In the first quarter ended March 31, Taiping bird Group’s revenue fell by nearly 8% to 2.46 billion yuan
Author | Zhou Huining
The domestic apparel industry is at a new watershed.
According to Fashion Business News, Taiping bird issued a profit warning on Thursday night. It is expected that the operating income and sales gross profit from January 1 to June 30 this year will decline year-on-year, and the net profit will be about 133 million yuan. Compared with the same period last year, it is expected to decrease by 278 million yuan, a year-on-year drop of 68%. If non-recurring gains and losses are deducted, net profit will drop by 98% year-on-year to about 5 million yuan.
Peacebird stated in the announcement that the decline in performance and profitability was mainly due to unfavorable factors such as the domestic epidemic, and the increase in fixed expenses such as rents for directly-operated stores and employee salaries has further compressed the profit margins of its brands.
In fact, in the first quarter of this year, the performance of PEACEBIRD has declined. In the three months ended March 31, Taipingbird Group’s revenue fell 7.74% year-on-year to 2.46 billion yuan, net profit fell 6.44% to 190 million yuan, and net profit after deducting extraordinary gains and losses fell 40.2% to 110 million yuan . This means that Peacebird will record a loss in the second quarter.
By brand, the revenue of Taiping bird’s women’s clothing dropped by 12.37% to 960 million yuan, with a gross profit margin of 55.93%. LEDING girls’ clothing dropped by 21.75% to 284 million yuan, with a gross profit margin of 49.53%. % fell to 310 million yuan, with a gross profit margin of 54.66%. Taiping bird men’s clothing was the only business that recorded growth, up 4.27% year-on-year to 827 million yuan, with a gross profit margin of 54.64%.
The picture shows the main performance data of PEACEBIRD in the first quarter
However, what happened to Peacebird is not an isolated case. According to the data of the China National Commercial Information Center, in May 2022, the retail sales and retail volume of women’s clothing products of key large-scale retail enterprises in the country were suspended due to repeated epidemics, and some businesses were suspended, and their performance declined to a large extent. %, retail sales fell by 31.69% year-on-year.
Data from the National Bureau of Statistics show that in the first five months of this year, China’s total retail sales of clothing, shoes, hats, and knitted textiles was 509.3 billion yuan, a year-on-year decrease of 8.1%. In May, the total retail sales of clothing, shoes, hats, and knitted textiles was 95.8 billion yuan, a year-on-year decrease of 16.2%.
Under the influence of this big environment, Ellassay, another domestic clothing group, also released a performance forecast on Thursday, predicting that the net profit in the first half of the year will be around 47 million yuan.Right, compared with the same period last year, it has decreased by about 74.79%, but through new store development, online sales, community marketing and other measures, revenue is expected to achieve a growth of 5% to 10%.
The brand matrix of Ellassay includes ELLASSAY, Laurel, Ed Hardy, IRO Paris and self-portrait. It is one of the domestic apparel retailers with international competitiveness. In the first quarter of this year, the group’s revenue increased by 17.2% to 627 million yuan, its net profit fell by 49.67% to 47.09 million yuan, and its net profit after deducting non-recurring gains and losses fell by 45% to 49.22 million yuan.
Semi Apparel also gave negative expectations in the performance forecast for the first half of 2022. Affected by the epidemic, the company’s sales revenue will drop by about 13% year-on-year during the reporting period, and the net profit attributable to shareholders of listed companies will be about 90 million yuan. to 130 million yuan, a decrease of 80.46% to 86.47% over the same period last year.
The latest performance forecast of Meibang Apparel shows that the company’s logistics headquarters in Pudong, Shanghai, was unable to deliver goods to the whole country and online shopping for about 2 months due to the epidemic, resulting in a decline in revenue and operating profit in the first half of the year, which belonged to shareholders The net loss of the company is about 620 million to 680 million yuan, and the loss after deducting non-recurring gains and losses is 600 million to 660 million yuan.
It is noteworthy that Peacebird was the most successful one in the top ten of the top 50 domestic listed apparel groups by revenue last year. It will enter the 10 billion club for the first time in 2021. Its business mainly covers Taipingbird women’s clothing , PEACEBIRD Men’s Wear, Leting Girls Wear, Mini Peace Children’s Wear, MG Material Girls Women’s Wear, COPPOLELLA, Beitian Children’s Wear and other brands. The target customers include fashionable girls aged 18 to 25, young men and women aged 25 to 30, etc. .
With the rise of street trends, PEACEBIRD acquired the Chinese business of Italian street skateboard fashion brand COPPOLELLA in 2020 after it won the operation right of American fashion brand MATERIALGIRL in China in 2013.
In 2021, PEACEBIRD also collaborated with designers such as Susan Fang, Xuzhi, WMWM, Calvin Luo, Garçon by Garçon, Nomanoman, Staffonly and Angus Chiang, and spent RMB 10 million to acquire 8ON8, an independent designer menswear brand 20% Shares, officially launched its efforts on the track of Chinese independent designer brands full of potential.
At the same time, Taiping bird continues to carry out brand building, channel building, digital construction and rapid response mechanism innovation around customer value, such as actively promoting small programs, Internet celebrities, etc.New social retail channels such as live broadcasting, creating novel and interesting interactive content on new traffic platforms favored by contemporary young people such as Bilibili, Douyin, Xiaohongshu, etc., accurately marketing different circles of people to strengthen core competitiveness and respond to External pressure and uncertainty.
Analysts predict that although the sales of all brands of PEACEBIRD have slowed down due to external disturbances in the short term, the management team of the group has been reorganized and the digital transformation process is going smoothly. With the recovery of the domestic retail environment and the effectiveness of brand strategic measures, Peacebird’s overall performance is expected to improve in the second half of the year.
As of Friday’s close, Taiping bird’s stock price fell 2.24% to 19.68 yuan, with a market value of about 9.4 billion yuan.
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