Out of the performance of the "winter" shoe companies to regain confidence in the hope of recovery
Listed footwear enterprises have recently completed all the 2022 performance disclosure, from the data, the enterprises last year's performance is not ideal.
China Business News reporter statistics found that among the nine listed shoes enterprises, only Jiu Xing Holdings achieved double growth in revenue and net profit, Daphne International and Wanli Ma two enterprises showed an increase in revenue not profit, including Hassan shares, ST start, Tianchuang fashion, thousand Baidu, ST Aokang, Red Dragonfly, including six enterprises have seen a double decline in revenue and net profit.
However, many shoe companies showed confidence in this year's performance, believing that the recovery of consumption coupled with the accelerated pace of enterprise transformation and upgrading can promote the rebound of performance.
Overall, in terms of revenue scale, the total revenue scale of the nine listed shoe enterprises last year was about 20.625 billion yuan, down 20.5% compared to the same period in 2021, with six of them experiencing a decline in revenue compared to the previous year, accounting for more than half of the total. In terms of individual companies, Jupiter Holdings topped the list with total revenue of $1.613 billion (approximately RMB 11.195 billion), while the lowest revenue was Daphne International with HK$200 million (approximately RMB 177 million). However, it is worth noting that Daphne International's revenue growth rate was the fastest among the nine listed shoe companies, with a year-on-year increase of 88.96% last year.
In terms of net profit, the total net profit of listed footwear companies last year was about -686 million yuan, down 2,562.79% from the same period in 2021, with five companies experiencing a triple-digit or higher net profit increase. Among them, Jiu Xing Holdings had the highest net profit of $118 million (about RMB 819 million); ST Start had the lowest net profit of -603 million yuan; ST Okang had the largest decline in net profit, down 1,185.93% year-on-year.
As for the reasons for the decline in performance, most companies blamed it on the impact of the epidemic. Hasson said in its earnings report that last year the company achieved operating revenue of 766 million yuan, down 22.64% year-on-year; net profit attributable to shareholders of the listed company -156 million yuan; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses -171 million yuan; basic earnings per share -0.706 yuan. The changes in net profit, net profit after deduction of extraordinary gain or loss, earnings per share and return on net assets during the reporting period were mainly due to the decline in operating revenue during the period as a result of the decrease in customer flow and demand in the offline channels and the impact of logistics restrictions, the increase in promotion efforts and the decrease in gross profit margin due to the decline in sales, the increase in the ratio of selling expenses to operating revenue due to the fixed expenses in selling expenses, the increase in the ratio of selling expenses to operating revenue due to the actual production and operation of the company, the adjustment of relevant business departments and the streamlining of personnel according to the actual production and operation situation, and the increase in the ratio of selling expenses to operating revenue. The company adjusted and streamlined its business departments according to the actual production and operation conditions, resulting in an increase in severance benefits.
In addition to the impact of external factors, the poor performance of the footwear industry is also attributable to changes in market trends.
In the past two years, the fashion footwear and apparel industry has been in a stagflationary adjustment phase, and market competition has further intensified. Tianchuang Fashion said in its financial report that in the past year, the overall consumer demand continued to shrink due to the objective influence of macro factors, consumers' social, travel and business scenarios decreased, and the consumer demand for clothing and footwear categories, etc. also continued to be weak, while the company shut down loss-making brands and closed loss-making stores during the reporting period, and the company's sales revenue scale continued to show a year-on-year decline under the combined influence of internal and external factors. The shrinkage of revenue scale directly affected the overall profit performance of the company. In FY2022, the fashion footwear and apparel segment achieved a main business revenue of RMB119.073 million, down 30.36% compared with the same period in 2021; net profit attributable to shareholders of the listed company for the reporting period was RMB-17.041 million, and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB-186.8 million. The performance of the fashion footwear and apparel segment suffered a loss for the first time.
Although the industry was affected by the relevant unfavorable factors last year, there are already signs of recovery this year. The relevant person in charge of the National Bureau of Statistics in the State Council Information Office held a press conference on April 18 this year, January-March total retail sales of consumer goods 11.5 trillion yuan, an increase of 5.8%, including clothing, shoes and hats, needlework category above the limit of 9% growth.
The spring breeze of consumer recovery has also blown to enterprises, and many shoe enterprises are confident about the performance this year. Ltd. told reporters that this year, the company will use "online + offline", "affiliate + agent" and other diversified operating models for channel layout, and strengthen the supply chain management. The current market economic recovery, consumer confidence, the company will also continue to improve the management capacity, and strive to improve performance.
The person in charge of Red Dragonfly said that the company's business data in the first quarter of this year tends to be good overall, which has laid a good foundation for the butterfly upgrade of the company's brand. After two years of adjustment, the company is gradually out of the "winter". In the future, Red Dragonfly will continue to bear the social responsibility of the company, integrate footwear brand and culture, express the cultural attitude with the brand; combine technology and fashion, convey Chinese characteristics with the product; link online and offline, respond to the trend of the times with the channel, provide consumers with more heart, more intimate and more valuable services with practical actions, and turn the company into a "shoe culture integration of multi-cultural The company will become a "Chinese footwear enterprise that integrates multiple cultures with shoe culture".
Okang is also accelerating the pace of upgrading through product upgrading, channel integration and brand transformation to explore the way for the future. According to its first quarterly report, Akcome International achieved revenue of 896 million yuan in the first quarter of this year, up 16.74% year-on-year; net profit attributable to the mother company was 0.41 billion yuan, up 249.02% year-on-year, and its performance has shown signs of recovery.
Industry insiders said that this year, with around the promotion of consumer policies overlapping consumer demand gradually rebounded, clothing home textile consumption growth momentum is obvious. Expected from the second half of this year, footwear consumption fundamentals are expected to long-term positive.