Intense Competition In Clothing And Apparel

< p > recently, Semir apparel released its 2012 performance bulletin. The company's revenue was 7 billion 37 million yuan, down 9.33% compared with the same period last year. The net profit of shareholders belonging to the listed company was 756 million yuan, which was 38.24% lower than that in 2011.

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< p > unlike American industry 002269.SZ, Semir a href= "http://cailiao.sjfzxm.com/matertial/show/default.aspx" > dress < /a > starts to show a startling decline from the first quarter. Its net profit attributable to listed companies in the first quarter decreased by 38.74% compared with the same period last year.

Subsequently, half year performance and three quarter performance fell by more than 40% year-on-year.

The cash flow situation of Semir clothing is also worrying. In the first three quarters of last year, the net increase in cash and cash equivalents was -6.80 billion.

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< p > last year, < a href= "//www.sjfzxm.com/" > casual dress > /a > fierce competition. "Going out of stock" became the main theme of the clothing industry.

Semir apparel said that the increase in the company's inventory led to the corresponding increase in stock price declines, and the short term decline in the gross profit margin caused by the accelerated inventory disposal was an important reason for the decline in the company's performance.

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< p > in fact, CITIC Securities analyst survey found that Semir apparel business area and terminal sales grew in 2012, but inventory clearance affected the effective reporting of actual report revenue, gross margin and sales expenses.

This is also the reason for the company's net profit decrease over the whole year.

However, analysts believe that due to autumn "a href=" http://sjfzxm.com/news/index_f.asp "winter" /a "sales improved compared with the spring and summer wear, the company recently shipped smoothly, stock pressure is not large.

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< p > besides, Semir apparel also said that the company has stepped up investment in product development, marketing network construction and supply chain, but the short-term benefits can not be clearly reflected, and it is also a factor that causes pressure on the company's performance.

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< p > similar to Semir costumes, as a leading enterprise in casual wear industry, the United States has not escaped the pressure of declining performance.

In the past, it was expected that the company's performance will be slightly reduced in 2012, and the net profit attributable to shareholders of listed companies will be -30%~0.

The company said that the continuous rise in costs such as manpower and rents is the main reason for the company's performance pressure.

But despite the sharp slowdown in the growth of its performance, it maintained a positive growth in the first three quarters of last year.

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< p >, however, excluding inventory drag on performance, the company's growth mode has not been able to meet the needs of competition is also an important reason.

"In 2012, Semir clothing and American Apparel were under pressure, and the profit growth was not as good as that of the industry. The main reason was that they were inferior to competitors in the process of direct competition with international brands, such as design development, brand marketing, supply chain management and quick response capability."

CITIC Securities analyst said.

At the same time, analysts expect that in 2013 and after, the company's business strategy will shift to endogenous growth and combine long and short term measures to achieve pition. However, the pformation is difficult to achieve overnight, and the effect remains uncertain.

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